Tether, the company known for running the world’s largest stablecoin, is reportedly in discussions to raise a substantial amount of capital. CEO Paolo Ardoino has confirmed the company’s evaluation of a major fundraising round from a select group of high-profile investors.
According to recent reports, the El Salvador-based company aims to secure between $15 billion and $20 billion in exchange for approximately a 3% stake through a private placement. This significant investment would be used to dramatically expand Tether’s strategy across its current and future business ventures. These areas include stablecoins, ensuring widespread distribution, artificial intelligence, commodity trading, energy, and the communication and media sectors. The transaction is expected to involve new equity, meaning existing investors would not be selling their shares.
While discussions are reportedly in their early stages and details, such as the final offering size, could change, the deal could value Tether at approximately $500 billion. This would position the crypto giant among the world’s most valuable private companies.
Tether has been making strides to re-establish its presence in the United States, a move influenced by the current administration’s supportive stance on cryptocurrency. Earlier this month, the company appointed a CEO for its U.S. operations. It launched a new U.S.-regulated stablecoin called USAT, which is designed for businesses and institutions, operating under the GENIUS Act.
The stablecoin USD Tether (USDT) is firmly pegged to the U.S. dollar and has recently surpassed a market capitalization of $172 billion. Its closest competitor, Circle’s USDC stablecoin, currently holds a market value of around $74 billion. This fundraising initiative underscores Tether’s ambition to solidify its position further and expand its influence within the evolving landscape of digital finance and technology.
