Tether Holdings plans to raise $15-20 billion to reach a valuation of $500 billion, on par with OpenAI and SpaceX.
The stablecoin market is witnessing a huge boom as Tether Holdings, the world's largest stablecoin issuer, seeks a massive Capital round that could value the company at $500 billion. According to Bloomberg , the company is planning to raise $15-20 billion through a private offering in exchange for about 3% of its shares.
This valuation would put the USDT issuer on par with tech giants like OpenAI and Elon Musk's SpaceX. Discussions are currently in the early stages with investment bank Cantor Fitzgerald advising, and the deal is expected to close by the end of the year.
Favorable political context
The move comes amid an increasingly stablecoin-friendly policy environment in the United States under the Trump administration, particularly with the passage of the Genius Act that allows for the legal issuance and trading of stablecoins. CEO Paolo Ardoino has revealed plans to create USAT, a stablecoin specifically for the US market, distinct from the current USDT .
Tether appointed Bo Hines, former Executive Director of the White House Digital Asset Working Group, as CEO of USAT in September, demonstrating a strong commitment to the U.S. market. The El Salvador-based company now holds the leading position with a USDT market Capital of $172 billion, more than double that of rival Circle.
According to a July certification, Tether issued $20 billion worth of USDT in the first six months of the year and generated a net profit of $5.7 billion, including $4.9 billion in the second quarter alone. The company also diversified its asset portfolio by holding both Bitcoin and gold.
Meanwhile, Circle successfully listed on the NYSE with an impressive increase, nearly four times the initial offering price of $31 and reaching a valuation of more than $30 billion according to Yahoo Finance data. Tether 's deal will involve issuing new shares rather than selling shares from existing investors.
Potential investors have been given access to the data room in recent weeks to assess the opportunity to participate. While Bo Hines confirmed that Tether has no plans to raise Capital at the Seoul conference, sources said that negotiations are ongoing and could change depending on the situation.
