USDT issuer Tether is reportedly eyeing a multibillion-dollar fundraising round, which could push its valuation to as high as $500 billion and place it among the world’s most valuable private companies. Tether has yet to issue an official statement on the matter, but a Sep. 23 CNBC report, which cited sources familiar with the development, claims the company behind the world’s largest stablecoin is in early-stage discussions with a select group of high-profile investors. Tether plans to raise $20 billion The raise, potentially as high as $20 billion, would be executed through the issuance of new equity rather than the sale of existing shares. According to the report , Cantor Fitzgerald is advising on the deal, and some investors have already begun conducting due diligence via a private data room. A close could happen as early as the end of this year. Separately, Bloomberg has reported that Tether is seeking between $15 billion and $20 billion for roughly a 3% stake in the company, indicating a target valuation of around $500 billion. However, the outlet also noted that these are top-end figures, and the final deal size could be lower depending on investor appetite and the equity offered. In a Sep. 24 Tether CEO Paolo Ardoino confirmed the development via a vague X post, stating that the company is indeed “evaluating a raise” with a hand-picked group of “high-profile key investors.” Paolo Ardoino 🤖 @paoloardoino · Follow Tether is evaluating a raise from a selected group of high-profile key investors, to maximize the scale of the Company’s strategy across all existing and new business lines (stablecoins, distribution ubiquity, AI, commodity trading, energy, communications, media) by several 6:42 AM · Sep 24, 2025 469 Reply Copy link Read 61 replies Amidst this backdrop, Tether is undergoing a period of explosive growth, posting a net profit of $4.9 billion for the second quarter of 2025, driven largely by returns on its massive reserve portfolio. As of that quarter, Tether disclosed $162.5 billion in reserves against $157.1 billion in liabilities. Meanwhile, USDT’s market capitalization has also surged past $173 billion, more than double that of its closest rival, Circle’s USDC, which stands at around $74 billion. Is Tether planning to go public? The scale and timing of the raise have reignited speculation about a possible Tether IPO, especially after the successful public debut of Circle earlier this year. Industry voices, including BitMEX co-founder Arthur Hayes, have suggested that Tether going public would be a game-changer for the stablecoin sector and could put Circle in a difficult position. “Next up a US IPO. Bye bye Circle,” Hayes wrote on X, reacting to the fundraising news, implying that Tether’s potential listing could overshadow its rival’s Wall Street moment. Tether is significantly more profitable than Circle, in part due to the latter’s revenue-sharing agreement with Coinbase, which impacts its margins. Circle relies heavily on the exchange to distribute USDC, while Tether has no such intermediaries for its global USDT issuance, which allows it to capture more value from its reserves. However, this isn’t the first time rumors of a Tether IPO have circulated. Back in June, a similar wave of speculation hit the market after analysts began assigning the firm a valuation of over $500 billion based on its earnings trajectory. At the time, CEO Paolo Ardoino dismissed the idea and said the company saw “no need to go public.” The post Tether eyes $20B raise at $500B valuation: is an IPO next? appeared first on Invezz
