Tether Holdings, the issuer of the world's largest stablecoin USDT, is in early-stage discussions to raise between $15 billion and $20 billion through a private placement, which could value the company at around $500 billion, as reported by Bloomberg. The deal involves selling approximately a 3% stake, with Cantor Fitzgerald acting as lead adviser. However, sources caution that the final fundraising size could be lower due to the preliminary nature of talks.
Tether's profitability is a key driver, with the company reporting a net profit of $4.9 billion in the second quarter of 2025, bringing its year-to-date total to $5.7 billion. This outperforms traditional financial giants like Goldman Sachs, which reported $2.4 billion in profit for the same period. Much of Tether's earnings stem from interest on its over $120 billion holdings in U.S. Treasuries and money market funds, amid elevated global rates. Reserves stand at $162.5 billion against liabilities of $157.1 billion, including about $8.9 billion in Bitcoin.
The potential valuation would place Tether among the top 10 most valuable private companies globally, rivaling firms like OpenAI and SpaceX. This move comes as Tether restructures with the creation of Tether USAT, a U.S.-focused entity aimed at addressing regulatory concerns following scrutiny from authorities like the New York Attorney General. The GENIUS Act, passed in July 2025, introduces federal licensing for stablecoin issuers, reinforcing dollar dominance in digital finance.
USDT maintains its dominance with a market capitalization of $172.8 billion, accounting for 56% of the $307.2 billion stablecoin market. In contrast, rival Circle, issuer of USDC, went public earlier this year with a market cap nearing $33 billion, positioning itself as a regulated alternative under frameworks like MiCA in the EU.