Tether is trying to raise up to $20 billion by selling a 3% stake, aiming for a $500 billion valuation

Tether is looking to raise between $15 billion and $20 billion in private funding, aiming to lock in a valuation near $500 billion, according to Bloomberg.

The El Salvador-based crypto giant is offering a 3% stake in the company, though discussions are still in early stages and final numbers could end up lower.

If successful, the raise would put Tether alongside the most valuable private companies in the world—like OpenAI and SpaceX—despite being a company in a barely regulated sector.

The equity raise would bring in new investors instead of existing shareholders selling their holdings. Cantor Fitzgerald is advising on the deal.

But when asked about the plans during a crypto conference in Seoul, Bo Hines, who leads Tether’s U.S. strategy and digital assets division, said flatly, “Tether has no plans to raise money.” Hines gave no further details. Other company reps kept quiet. Cantor also refused to comment on any ongoing deals.

Tether outpaces Circle as it cashes in on U.S. Treasuries

Tether runs the USDT token, the largest stablecoin by far, with a market cap of $172 billion. It’s tied to the U.S. dollar and way ahead of second-place USDC, which sits at $74 billion and is managed by publicly listed Circle Internet Group Inc. Circle was valued at $30 billion earlier this week, a fraction of what Tether is now targeting.

Tether has been stacking profits by investing customer reserves into short-term U.S. Treasuries and other cash-like assets. In Q2, it claimed $4.9 billion in net income. CEO Paolo Ardoino told attendees in Seoul that the company enjoys a 99% profit margin. These numbers aren’t subject to public market standards or outside audits, but they’ve made Tether one of the most profitable players in the space.

And unlike Circle, Tether has no interest in going public. Paolo said, “I don’t want to spend the next three months in every single quarter of my life trying to explain to analysts why we are not optimizing to make two cents more.” Last year, the company pulled in $13.7 billion in profit, and Paolo insists that’s more than enough to fund its operations without needing a stock listing.

Tether’s growth hasn’t just been about minting tokens. It’s also built out infrastructure. Paolo said Tether doesn’t rely on revenue-sharing deals with platforms like Coinbase, which Circle uses to distribute its coin. “We don’t have, like our competitors, to rent out the distribution channels. We own them,” he said.

Tether prepares for U.S. return under Trump-friendly policies

Tether is now quietly re-entering the U.S. market, encouraged by the return of President Donald Trump and his pro-crypto stance. The company had kept a low profile in the States after a $41 million fine in 2021 over misleading reserve disclosures. But with Trump back in the White House, Tether is betting big on U.S. expansion.

As part of that comeback, the company has unveiled plans for a U.S.-regulated stablecoin, led by Hines, who used to serve in the Trump White House. Over the past few weeks, potential investors were given access to a data room to review internal numbers before the raise wraps by year-end.

Tether’s next product for the U.S. is a new token called USAT, which aims to offer instant settlement and lower fees for domestic users. The token is being built in partnership with Cantor Fitzgerald LP and Anchorage Digital Bank NA. Hines said the product targets “consumers that have been underbanked or underserved for quite some time and don’t want to pay insane amounts for transaction fees when they’re just moving money to friends and family.” Tether also plans to offer USAT to enterprise clients, including banks.

Paolo, who shared the stage with Hines in Seoul, said Tether’s competitive edge is the network it has built over the last 11 years, and that they’ll keep investing in it rather than handing over control to distribution partners. While Circle is still chasing market share with Coinbase, Tether is doubling down on what it already owns.

The company has already spent $5 billion in the United States. That includes a $775 million investment in Rumble Inc., a video platform known for its right-wing user base. Paolo said the company plans to continue investing in similar ventures, using its cash reserves instead of raising from public markets.

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