Tether is reportedly eyeing up to a $500 billion valuation, which would rank the stablecoin issuer among the world’s most valuable companies.
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Stablecoin giant Tether Holdings is reportedly exploring a fundraising round of up to $20 billion that would value the company at about $500 billion, putting it in the ranks of the world’s most valuable private entities.
Bloomberg, citing people familiar with the matter, Tether is considering raising between $15 billion and $20 billion in exchange for about a 3% stake through a private placement, with Cantor Fitzgerald acting as lead adviser.
One source reportedly cautioned that the final amount could be significantly lower, as discussions remain preliminary.
For comparison, OpenAI — developer of ChatGPT — was also said to be in talks about a potential raise at a $500 billion valuation, according to .
Outside of crypto, Tether lacks the mainstream profile of OpenAI, but it has quietly become one of the most profitable companies globally on a per-employee basis. The company in the second quarter alone, bringing its year-to-date total to $5.7 billion.
Cointelegraph reached out to Tether for comment, but had not received a response at the time of publication. Bloomberg, meanwhile, reported that Bo Hines — the newly appointed CEO of Tether USAT, a US-focused stablecoin issuer — told a conference in Seoul on Tuesday that the company has no plans to raise additional funds.
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Tether’s USDt () remains the largest dollar-backed stablecoin in circulation, with a market value of $172.8 billion, according to . That gives it roughly a 56% share of the $307.2 billion stablecoin market.
Adoption of stablecoins has accelerated globally as they offer a low-cost, efficient way to move money, expand financial access and serve as an on-ramp to blockchain applications. In the United States, the aims to preserve the dollar’s dominance by establishing clear regulations for issuers.
In this environment, Tether isn’t the only player potentially commanding eye-popping valuations. Earlier this year, Circle Internet Group — issuer of USDC () — opted to go public, to secure a valuation above $18 billion. Circle’s market value has since climbed to nearly $33 billion.
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