SoftBank and Ark Invest have entered early discussions to participate in Tether’s largest external capital raise, according to a Sept. 26 Bloomberg News report.
The stablecoin issuer seeks between $15 billion and $20 billion in exchange for approximately 3% equity through a private placement. The fundraising could value Tether at $500 billion, positioning it among the most valuable private companies globally.
The backing from these technology investment giants could accelerate Tether’s mainstream adoption efforts and enhance its legitimacy across traditional finance sectors.
Investor profiles
Tether has sought greater political acceptance in markets, including the US. The firm recently announced the USAT, a US-compliant stablecoin that could challenge Circle’s USDC dominance in the country.
Additionally, Tether has added Bo Hines, President Donald Trump’s former crypto advisor, as its Strategic Advisor for Digital Assets and US Strategy.
Tokyo-based SoftBank maintains a portfolio of technology investments spanning data centers, autonomous vehicles, and semiconductors.
The firm has recently committed $30 billion to OpenAI and continues to pursue high-growth technology opportunities. Meanwhile, Cathie Wood’s Ark Invest has invested in stablecoin competitors, including Circle.
Cantor Fitzgerald is serving as advisor for Tether on the fundraising process. The New York-based investment bank, led by now-US Commerce Secretary Howard Lutnick, also provides custody services for Tether’s reserve assets.
Billions in revenue
Tether generates revenue by investing reserves backing its USDT stablecoin in cash-equivalent assets, including US Treasuries. This business model allows the company to earn interest on these holdings while maintaining the token’s dollar peg.
Tether reported a net income of approximately $4.9 billion for the second quarter, bringing its year-to-date total to $5.7 billion. As of Sept. 25, USDT’s supply dominates 63% of the stablecoin market with $174.2 billion.
CEO Paolo Ardoino and co-founder Giancarlo Devasini lead the company. Devasini serves as chairman and holds the largest ownership stake.
The funding discussions represent Tether’s most substantial effort to attract institutional capital since its founding. If successful, it could establish new benchmarks for crypto company valuations and attract additional traditional finance participants to the stablecoin sector.
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