Tether Holdings is in talks with investors to raise as much as $20b, a deal that could value the stablecoin issuer near $500b and place it among the world’s most valuable private companies.
The firm is seeking between $15b and $20b through a private placement for about a 3% stake, Bloomberg reported Tuesday. The transaction would reportedly involve new equity, not secondary sales by existing backers. Cantor Fitzgerald is acting as lead adviser on the process.
Tether reported $4.9b in profit for the second quarter in July. Chief executive Paolo Ardoino has said profit margins are about 99%. These figures are not subject to the reporting standards required of public companies.
Tether issues USDT, the largest dollar-pegged token, with a market value around $172b. USDC from Circle ranks second at about $74b. The company earns yield by parking reserves in cash like assets, including US Treasuries.
Earlier this month, Tether announced USA₮, a dollar backed token intended to strengthen the role of the US dollar in digital markets. The push follows a shift in the US policy climate, with the GENIUS Act expected to expand the role of stablecoins and potentially allow banks, card networks and technology firms to issue their own tokens.
The fundraise comes as Tether lays groundwork to return to the US. The company has outlined a plan for a US-regulated stablecoin and appointed Bo Hines, a former White House crypto official, to lead the effort.
