Tether Holdings SA, issuer of the world’s largest stablecoin, is in discussions with investors to raise as much as $20 billion through a private placement, Bloomberg reported, citing people familiar with the matter. The potential deal could push the El Salvador-based company into the ranks of the world’s most valuable private firms.
According to the report, Tether is seeking between $15 billion and $20 billion in exchange for roughly a 3% stake, which would value the company around $500 billion — comparable to OpenAI and SpaceX. However, sources cautioned that final figures may be significantly lower, with talks still in early stages. Cantor Fitzgerald is serving as lead adviser, the people said.
The proposed fundraising would involve issuing new equity rather than existing investors selling their shares. If successful, it would mark a striking milestone for a business that operates with limited regulatory oversight, even as competition among stablecoin issuers grows. By contrast, publicly traded rival Circle Internet Group Inc. was valued at about $30 billion earlier this week.
Tether has profited heavily from investing reserves backing its USDT token in cash-like assets, including U.S. Treasuries. It reported $4.9 billion in profit in the second quarter, claiming a 99% profit margin. The company’s flagship stablecoin, USDT, is pegged to the U.S. dollar and carries a market value of $172 billion, far outpacing Circle’s USDC at $74 billion.
Despite the reported fundraising, Tether’s strategic adviser for digital assets, Bo Hines, said at a conference in Seoul that the firm had “no plans” to raise capital. A company spokesperson and Cantor Fitzgerald both declined to comment.
The talks come as Tether prepares to re-enter the U.S. market, buoyed by President Donald Trump’s pro-crypto stance. Earlier this year, the company announced plans for a U.S.-regulated stablecoin and tapped Hines, a former White House crypto official, to lead the effort. Tether previously clashed with regulators, paying a $41 million fine in 2021 over reserve disclosures.
