Tether Holdings Considers Major Fundraising Amidst Stablecoin Market Growth

According to Cointelegraph, Tether Holdings, a leading stablecoin issuer, is reportedly exploring a significant fundraising round that could value the company at approximately $500 billion. This move would position Tether among the world's most valuable private companies. Sources familiar with the situation indicate that Tether is contemplating raising between $15 billion and $20 billion through a private placement, with Cantor Fitzgerald serving as the lead adviser. However, one source cautioned that the final amount could be considerably lower, as discussions are still in the preliminary stages. In comparison, OpenAI, known for developing ChatGPT, is also reportedly in talks for a potential raise at a similar valuation of $500 billion, as reported by The New York Times. While Tether may not have the mainstream recognition of OpenAI outside the cryptocurrency sector, it has quietly emerged as one of the most profitable companies globally on a per-employee basis. The company reported a profit of $4.9 billion in the second quarter alone, bringing its total profit for the year to $5.7 billion. Cointelegraph attempted to reach Tether for comment but had not received a response at the time of publication. Meanwhile, Bloomberg reported that Bo Hines, the newly appointed CEO of Tether USAT, a U.S.-focused stablecoin issuer, stated at a conference in Seoul that the company has no plans to raise additional funds. Tether's USDt (USDT) remains the largest dollar-backed stablecoin in circulation, with a market value of $172.8 billion, according to CoinMarketCap. This gives it approximately a 56% share of the $307.2 billion stablecoin market. The adoption of stablecoins has accelerated globally due to their low-cost, efficient means of transferring money, expanding financial access, and serving as an entry point to blockchain applications. In the United States, the recently passed GENIUS stablecoin bill aims to maintain the dollar's dominance by establishing clear regulations for issuers. In this competitive environment, Tether is not the only company potentially achieving high valuations. Earlier this year, Circle Internet Group, the issuer of USDC (USDC), went public, experiencing a surge of over 160% on its debut to secure a valuation exceeding $18 billion. Circle's market value has since risen to nearly $33 billion, highlighting the growing interest and investment in the stablecoin sector.