Tether, the issuer of the world's largest stablecoin USDT, has initiated a capital raise targeting a valuation of up to $500 billion. The company is negotiating with high-profile tech financiers, including SoftBank Group Corp. and Ark Investment Management, for a private placement that seeks to raise between $15 billion and $20 billion in exchange for a 3% equity stake.
This funding effort marks a pivotal step in strengthening Tether's dominance in global digital finance. USDT, which is pegged to the U.S. dollar, continues to lead the stablecoin sector with over $173 billion in digital tokens, far surpassing competitors like Circle. Tether leverages reserve investments, such as U.S. Treasuries, to generate substantial income and maintain a robust peg.
CEO Paolo Ardoino recently alluded to evaluating a raise from key investors to maximize the company's strategy across stablecoins, AI, energy, and other sectors. The involvement of SoftBank and Ark, who have backed groundbreaking technologies, would bring further credibility and exposure. If successful, Tether could be poised for a record-breaking IPO, potentially elevating chairman Giancarlo Devasini to one of the world's wealthiest individuals.
Additionally, Tether plans to introduce a U.S.-based stablecoin called USAT to gain broader regulatory recognition and access new markets. The company works with Cantor Fitzgerald LP for asset custody and strategic advice, enhancing institutional trust. This move signals a strategic push beyond its offshore base, aligning with mainstream financial standards.