Tether reportedly seeks lofty $500 billion valuation in capital raise

Tether, the leader in the stablecoin market, is reportedly aiming to secure up to $20 billion in funding, which could elevate the company's valuation to an astounding $500 billion, as indicated by a recent Bloomberg News report. This substantial capital raise would be achieved through a private placement, offering approximately 3% of the company's equity. Sources familiar with the situation revealed that Tether is looking to raise between $15 billion and $20 billion, exclusively through new equity, avoiding any sales from existing investors. It is important to note that discussions are still in their preliminary stages, which means the final details, including the offering size, may evolve. If successful, Tether's valuation would position it alongside some of the most prominent private enterprises globally, such as SpaceX and OpenAI. Earlier this year, OpenAI's fundraising efforts valued the company at around $300 billion. Tether, once criticized as a preferred cryptocurrency for illicit activities, has recently been taking steps to reestablish its presence in the U.S. market, particularly under the current administration's favorable crypto policies. This month, Tether appointed a new CEO for its U.S. operations and introduced a new token, USAT, aimed at businesses and institutions, which will comply with U.S. regulations under the GENIUS Act. Currently, Tether’s USD Tether (USDT), pegged to the U.S. dollar, boasts a market capitalization exceeding $172 billion, placing it well ahead of its closest competitor, Circle's USDC stablecoin, which holds a valuation of approximately $74 billion.