Tether Holdings SA, the issuer of the world’s largest stablecoin USDT, is actively exploring a major capital raise that could value the company at approximately $500 billion—potentially making it the most valuable private company globally.
This would surpass current leaders like SpaceX valued at around $350 billion in recent rounds and OpenAI at $300 billion earlier in 2025, based on the scale of Tether’s operations and profitability.
Tether is in talks to raise $15–20 billion through a private equity placement, offering roughly 3% of the company to investors. Cantor Fitzgerald is advising on the deal. The implied valuation of $500 billion is ambitious but tied to the stake size; final terms could adjust lower depending on negotiations.
Discussions are ongoing as of late September 2025, with CEO Paolo Ardoino confirming the company is evaluating “high-profile key investors.” However, a conflicting statement from Tether USAT’s new CEO Bo Hines a U.S.-focused subsidiary indicated no immediate plans for fundraising, suggesting this may apply to the core El Salvador-based entity.
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Proceeds would fuel expansion into AI, energy, communications, and other sectors, diversifying beyond stablecoin issuance. Tether has already allocated up to 15% of profits to Bitcoin purchases.
Why This Valuation Makes Sense and Why It’s Eye-Popping
Tether’s USDT has a circulating supply exceeding $170 billion, dominating over 50% of the stablecoin market. The company’s profitability is staggering: Q2 2025 profits: $4.9 billion 99% margin from U.S. Treasury yields on reserves.
Year-to-date: $5.7 billion. PE Multiple: Analysts estimate ~68x based on $173 billion in USDT circulation and a 4% yield. Rival Circle (USDC issuer) is valued at ~$30 billion, highlighting Tether’s lead despite past regulatory scrutiny (e.g., 2021 disclosures on reserve backing).
Buzz is building, with users hyping it as a “stablecoin king flex” and speculating on BTC implications amid $118K prices. Posts emphasize Tether’s BTC stacking and whale activity. Falling U.S. interest rates could squeeze yields, and centralization concerns loom in a market where Tether holds outsized influence.
Regulatory hurdles persist, especially with U.S. re-entry plans. If successful, this cements stablecoins as a trillion-dollar asset class bridge between crypto and TradFi. If it closes at $500B, Tether won’t just be the top private company; it’ll redefine crypto’s role in global finance.
Tether’s USDT, with over $170B in circulation, already commands ~50% of the stablecoin market. A $500B valuation would solidify its lead over rivals like Circle’s USDC ($30B valuation), potentially discouraging competition and centralizing stablecoin influence.
A $500B valuation puts Tether on par with major banks (e.g., Goldman Sachs at ~$170B), signaling stablecoins’ growing role in global finance. This could accelerate institutional adoption of crypto for payments and settlements.
Tether’s size and U.S. re-entry plans via Tether USAT will likely intensify regulatory oversight, especially given past concerns about reserve transparency. Stricter rules could reshape stablecoin operations or spark U.S. policy shifts on digital assets.
Tether’s ~$5B quarterly profits rely on U.S. Treasury yields. Falling interest rates could compress margins, impacting valuations and forcing diversification into AI, energy, or communications as planned.
USDT’s peg to the U.S. dollar reinforces its global use, but a $500B Tether could amplify debates about dollar dominance in a world exploring CBDCs and de-dollarization.
The $15–20B raise would fund Tether’s expansion into AI, energy, and communications, potentially disrupting these sectors. Success could position Tether as a cross-industry titan, akin to tech conglomerates.
Tether’s raise is framed as a “stablecoin king” moment, potentially shifting public perception of crypto from speculative to foundational. This could drive mainstream adoption. A $500B valuation concentrates wealth among Tether’s investors and leadership, raising questions about inequality in crypto’s growth.
If Tether secures a $500B valuation, it could redefine crypto’s role in global finance, accelerate stablecoin adoption, and reshape private markets. However, its success hinges on navigating regulatory hurdles, maintaining reserve stability, and delivering on diversification.