TLDR
- Tether is seeking $15-20 billion in funding for roughly 3% stake at $500 billion valuation
- The deal would make Tether one of the world’s most valuable private companies alongside OpenAI and SpaceX
- Tether generated $4.9 billion profit in Q2 2025 with claimed 99% profit margins from parking reserves in interest-bearing assets
- Arthur Hayes suggests potential IPO could threaten Circle’s market position given Tether’s superior profitability
- Company plans US expansion under Trump administration after previous regulatory clashes
Tether Holdings, the world’s largest stablecoin issuer, is in talks to raise up to $20 billion from investors. The funding round could value the El Salvador-based company at approximately $500 billion.
Tether, issuer of the world’s largest stablecoin, is in talks with investors to raise as much as $20 billion, a deal that could propel the crypto firm into the highest ranks of the world’s most valuable private companies https://t.co/34rx0HGO3T
— Bloomberg (@business) September 23, 2025
The proposed deal involves selling roughly 3% of the company through new equity rather than existing stakeholder exits. Cantor Fitzgerald is serving as the lead adviser for the transaction, with talks currently in early stages.
This valuation would place Tether among the most valuable private companies globally, comparable to OpenAI and Elon Musk’s SpaceX. The figure represents a massive premium over Circle Internet Group, Tether’s closest competitor, which trades at around $30 billion market cap.
Tether CEO Paolo Ardoino confirmed the company is evaluating funding from high-profile investors. The capital will support expansion across multiple business lines including stablecoins, AI, commodity trading, energy, communications and media.
Financial Performance Drives Valuation
Tether’s business model centers on its USDT stablecoin, which maintains a $172 billion market value pegged to the US dollar. The company generates revenue by investing reserves backing the token in cash-like assets and US Treasuries.
The stablecoin issuer reported $4.9 billion in profit during the second quarter of 2025. Ardoino recently claimed the company operates with a 99% profit margin, though these figures aren’t subject to public company reporting standards.
Circle’s USDC stablecoin, ranked second globally, holds about $74 billion in market value. This gives Tether approximately 2.3 times larger market presence than its main competitor.
Regulatory Strategy and US Return
Tether has been laying groundwork to re-enter the US market under President Trump’s crypto-friendly policies. The company recently announced plans for a US-regulated stablecoin and hired Bo Hines, a former White House crypto official, to lead the initiative.
The move represents a shift from Tether’s previous US stance after regulatory conflicts. In 2021, the company paid a $41 million fine to settle allegations about misrepresenting its reserves.
Prospective investors have accessed due diligence materials over recent weeks to evaluate participation in the funding round. Sources expect the deal to close by year-end, though final terms may change from initial targets.
Market Competition and IPO Speculation
BitMEX co-founder Arthur Hayes has fueled speculation about a potential Tether IPO following the valuation news. Hayes suggested such a move could threaten Circle’s recent public listing success.
Circle completed an oversubscribed IPO that was initially oversubscribed 25 times before raising the cap. However, Tether’s valuation at $500 billion creates a 14-fold difference between the companies.
The profit disparity between the firms stems from different distribution models. Circle shares revenue with Coinbase exchange for USDC distribution, while Tether manages USDT distribution independently across global markets.
While Tether generated approximately $5 billion in Q2 2025, Circle has struggled with profitability due to its revenue-sharing arrangements. This fundamental difference explains the vast valuation gap between the stablecoin issuers.
Despite IPO speculation, Ardoino previously stated in June that Tether has no plans to go public. The CEO expressed confidence in the company’s private structure and current growth trajectory.
The funding talks come as falling US interest rates could potentially impact Tether’s windfall earnings from Treasury investments. However, the company’s diversification into multiple business sectors may offset any yield-related revenue pressures.
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