Tether, the issuer of the world's largest stablecoin USDT, is making a final push to secure investor commitments for a major funding round at a staggering $500 billion valuation. The company has reportedly given potential investors a strict 14-day deadline to commit funds, with the ultimatum that those who do not participate will be excluded from the deal permanently.
The outcome of this fundraising effort is critical. If sufficient investor demand materializes, the deal will proceed, solidifying Tether's position as a financial giant. If not, the company may postpone the round. A successful raise at this valuation would place Tether's worth above most major U.S. banks, including Goldman Sachs, Bank of America, and Wells Fargo, trailing only JPMorgan Chase.
This is not Tether's first attempt. The funding round nearly collapsed last year. Initial discussions in late 2025 suggested raising $15 billion to $20 billion, but by February 2026, advisers had reportedly lowered the target to around $5 billion amid investor concerns over transparency and the lofty valuation. CEO Paolo Ardoino has consistently pushed back, asserting that investor interest remains strong and the company is not rushing.
To bolster confidence in its $500 billion valuation target, Tether has taken a significant step toward greater transparency. Last month, the company signed a Big Four accounting firm, identified in reports as KPMG, to conduct its first-ever full audit of USDT's financial statements. This move, described as potentially one of the largest audits in financial history, aims to shift from periodic reserve attestations to a comprehensive examination of assets, liabilities, and internal controls.
Tether's core product, USDT, continues to dominate the stablecoin market with a market capitalization exceeding $184 billion, vastly outpacing competitors like USDC ($32.1B) and DAI ($5.3B). The proposed valuation, however, reflects ambitions far beyond stablecoin issuance. The fundraising is intended to fuel expansion across existing and new business lines, including products like Tether Gold and Tether EURt, as competition from PayPal, Circle, and traditional finance intensifies.
