Tether Eyes $500 Billion Valuation in Capital Raise

Venezuelan Bolivar and U.S. Dollar banknotes and representations of cryptocurrency Tether are seen in this illustration taken Sept. 8, 2025.

Dado Ruvic | Array

Tether, the dominant force behind the world’s largest stablecoin, USDT, is reportedly exploring a capital raise that could value the cryptocurrency giant at a staggering $500 billion, rivaling tech titans like OpenAI and SpaceX. According to sources familiar with the matter, the company is aiming to secure between $15 billion and $20 billion through a private placement, offering roughly a 3% stake. This infusion of capital would be in the form of new equity, rather than a secondary sale by existing stakeholders.

Sources indicate that these discussions are in their preliminary stages, and the final terms, including the offering’s size, remain subject to change. Nevertheless, the proposed valuation underscores the evolving landscape of the cryptocurrency market and Tether’s increasingly influential position within it.

A $500 billion valuation would place Tether among the world’s most valuable private companies, a testament to the growing acceptance and integration of stablecoins into the global financial system. For comparison, OpenAI, the artificial intelligence powerhouse, commanded a $300 billion valuation in a fundraising round earlier this year. SpaceX, Elon Musk’s space exploration company, is also within that valuation range.

This potential capital raise arrives as Tether navigates increasing regulatory scrutiny and competition within the stablecoin sector. USDT currently boasts a market capitalization exceeding $172 billion, far surpassing its closest competitor, Circle’s USDC, which stands at approximately $74 billion. However, concerns regarding the transparency and composition of Tether’s reserves, which back USDT, have persistently fueled debate within the financial community.

Furthermore, Tether has recently signaled its intention to expand its presence within the United States, coinciding with what some perceive as a more favorable regulatory environment under President Trump. The company recently appointed a CEO for its U.S. division and introduced USAT, a new stablecoin targeting businesses and institutions within the U.S., operating under the regulatory framework of the proposed GENIUS Act, although details of this Act require further scrutiny.

Analysts suggest that this capital raise could provide Tether with the resources necessary to further diversify its reserve assets, enhance transparency, and solidify its market dominance in the face of rising competition from both established financial institutions and emerging decentralized finance (DeFi) protocols. The outcome of this funding round will undoubtedly be closely watched by investors, regulators, and industry participants alike, as it could reshape the future of the stablecoin market and the broader cryptocurrency ecosystem.