CMC News

#Tether Eyes $20B Funding Round at $500B Valuation Target

The stablecoin giant is reportedly seeking to raise up to $20 billion for approximately 3% equity stake through private placement. Cantor Fitzgerald serves as lead advisor for the potential deal that would rank Tether among the world's most valuable private companies.

Sources familiar with discussions cautioned final amounts could be significantly lower than initial targets. The proposed valuation would place Tether alongside #OpenAI and #SpaceX in the exclusive $500 billion private company tier, reflecting the #stablecoin sector's explosive growth trajectory.

$USDT issuer Tether posted $4.9 billion profit in Q2 2025 alone, bringing year-to-date earnings to $5.7 billion. The company has quietly become one of the world's most profitable entities on a per-employee basis despite lacking OpenAI's mainstream recognition.

Tether maintains its dominant position with $172.8 billion $USDT market capitalization, commanding roughly 56% of the $307.2 billion total stablecoin market. The company recently announced plans to launch USAT, a USD-pegged stablecoin specifically designed for the American market.

However, Bo Hines, CEO of Tether's newly created U.S. division, stated at a Seoul conference that the company "has no plans to raise money." This contradiction highlights the preliminary nature of ongoing fundraising discussions and potential internal strategic disagreements.

Cantor Fitzgerald previously secured a 5% ownership stake in Tether worth approximately $600 million, according to Wall Street Journal reports. At a $500 billion valuation, this stake would be worth $25 billion, representing substantial returns for the financial services firm.

Competitor Circle Internet Group went public earlier this year, surging over 160% on debut to secure an $18 billion valuation. Circle's market value has since climbed to nearly $33 billion, with $74 billion in #USDC tokens currently in circulation.