Tether’s global ambitions

Source: Galaxy; Compiled by: Golden Finance Bloomberg reported on Tuesday that Tether, the world's largest stablecoin issuer, is in talks to raise $15 billion to $20 billion in a private placement, a move that would value the company at approximately $500 billion. Tether CEO Paolo Ardoino confirmed the possibility of the financing on Twitter on Wednesday, saying the company is "evaluating the possibility of obtaining financing from a number of well-known key investors to strategically scale all of our existing and new business lines (stablecoins, distribution and adoption, artificial intelligence, commodities trading, energy, communications, media) several times over." Prior to this announcement, Tether was actively expanding and had made a series of progress: On September 25, Plasma officially launched. Plasma is a stablecoin-optimized Layer-1 protocol backed by Bitfinex (Tether's sister exchange), with Ardoino serving as a seed investor. Plasma aims to serve as a scalable settlement layer for Tether products. On September 24, Tether announced the hiring of Benjamin Habbel as Chief Business Officer. Habbel previously founded Limestone Capital, a $1 billion private equity firm. On September 12, Tether announced plans to launch USAT, a US-regulated, dollar-backed stablecoin, with Bo Hines, former Executive Director of the President's Task Force on Digital Assets, serving as CEO of Tether USA. The supply of Tether's flagship stablecoin, USDT, has nearly quintupled since the beginning of 2023, reaching over $170 billion. While not finalized, a $500 billion valuation for Tether would make it one of the world's largest private companies, alongside tech giants OpenAI and SpaceX. Bloomberg reports that the transaction is expected to close by the end of the year. Galaxy's Take: What's the most valuable asset in cryptocurrency today? One obvious choice is Bitcoin, which is volatile and prone to speculative rallies, but also a multi-trillion-dollar asset increasingly used as a hedge against the devaluation of fiat currencies. Now, another possibility is Tether—not USDT, but the company behind it. The stablecoin itself can be seen as the antithesis of BTC: a non-volatile, dollar-pegged payment method that has become a pillar of global cryptocurrency liquidity. This contrast helps explain why Tether seeks a valuation on par with the world's leading tech innovators. While Bitcoin's value stems from scarcity and market confidence, Tether's value stems from stability and scale. Its quarterly profits approach $5 billion, a margin that would put even hedge funds to shame. Indeed, if stablecoins truly hold the promise of becoming the new rails of global finance and commerce, Tether stands to benefit most. Therefore, this $15-20 billion funding round may be more about influence than cash—an effort to recruit partners and establish legitimacy at a time when cryptocurrency giants can no longer afford to operate in a murky area. Two models of stablecoin legitimacy are emerging. 1. Circle's IPO this year placed transparency at the heart of its pitch. 2. Tether, by contrast, appears to be leveraging private capital and influence to consolidate its dominance. This may also aim to bolster its credibility amid long-standing doubts about its reserves and corporate structure. Tether's recently released Q2 2025 attestation confirms that over $157 billion in USDT has been issued, backed by $127 billion in U.S. Treasuries and $35 billion in other assets. However, the company's size and influence in the industry have led many skeptics to call for a fully independent audit, rather than an attestation.

This financing announcement also reinforces Tether's transformation into more than just a stablecoin issuer. In addition to tokenizing US dollars on the chain, Tether also hopes to ensure that these dollars circulate with the least possible friction. The company emphasizes that artificial intelligence, telecommunications, Bitcoin mining and energy, cloud computing, real estate, and even neurotechnology are other areas of expansion, aiming to build "resilient long-term infrastructure" for the digital asset economy. In 2023, Tether invested more than $600 million in Northern Data for AI infrastructure construction. In 2024, Tether spent $200 million to acquire a majority stake in Blackrock Neurotech to advance the development of brain-computer interfaces.

Whether this diversification is strategic foresight or a futile mission deviation,it demonstrates Tether’s intention to become not only a stablecoin issuer but also an influential institution in technology, energy, and global finance.

Whether this financing closes at a $500 billion valuation or not, it solidifies that ambition.