Tether Seeks $20B Raise at $500B Valuation
Tether aims to raise up to $20 billion for a 3% equity stake, targeting a $500 billion valuation with Cantor Fitzgerald as lead adviser.
- Tether is reportedly raising $15B–$20B for a 3% equity stake
- The deal values the company at nearly $500 billion
- Cantor Fitzgerald is advising the funding round
According to Bloomberg, Tether—the company behind the world’s largest stablecoin USDT—is reportedly looking to raise between $15 billion to $20 billion. This fundraising effort comes in exchange for a 3% equity stake, suggesting a potential company valuation of up to $500 billion.
While the discussions are still in the early stages, this move would place Tether among the most highly valued private fintech firms in the world. The firm has tapped Cantor Fitzgerald, a prominent investment bank, as the lead adviser on the deal.
A $500 Billion Valuation?
If the fundraising materializes at the upper end of Tether’s expectations, it would imply a valuation comparable to tech giants. For reference, companies like JPMorgan and Visa have market caps in the same ballpark. Tether’s strategy signals how valuable the stablecoin ecosystem has become in the broader crypto and financial world.
USDT currently dominates the stablecoin market, with over $80 billion in circulating supply, making it a crucial piece of the digital finance infrastructure. Tether has long been criticized for a lack of transparency, but recent efforts to increase reserve disclosures and build relationships with major financial players seem to be paying off.
Market Implications and Investor Sentiment
A successful funding round at this scale could significantly boost investor confidence in both Tether and the broader stablecoin market. It would also underscore the growing integration of crypto and traditional finance, especially as established firms like Cantor Fitzgerald play advisory roles.
However, final terms of the deal are subject to change, and it’s unclear whether Tether will meet its ambitious targets. For now, the crypto world is watching closely as one of its key players aims for a valuation that could reshape the industry’s landscape.
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