Tether, the company behind the world’s largest stablecoin, is rethinking its long-discussed fundraising ambitions after potential investors pushed back on a proposed $500 billion valuation.
According to the Financial Times, advisers are now circulating a far more modest capital raise of about $5 billion, a sharp reduction from earlier conversations that explored raising as much as $20 billion. People familiar with the talks said negotiations are ongoing and terms could still shift depending on market conditions.
From bold targets to a smaller raise
Early fundraising discussions, first reported by Bloomberg in September, outlined a plan to raise between $15 billion and $20 billion by selling roughly 3% of the company. At that level, Tether would have ranked among the most valuable private companies globally. High-profile names such as SoftBank and Ark Investment Management were mentioned as potential backers, though sources cautioned that the figures reflected upper-end targets rather than firm commitments.
Tether CEO Paolo Ardoino told the Financial Times that the larger numbers were misunderstood. He described the $20 billion figure as “the maximum we were ready to sell,” emphasizing that the company is highly profitable and not under pressure to raise external capital. Ardoino also noted that internal shareholders are reluctant to part with equity.
Investor concerns remain
Despite Tether’s scale, some investors have expressed caution, weighing the company’s profitability against ongoing regulatory and operational risks. Tether has faced scrutiny for years over its reserves and compliance practices. A 2023 report from TRM Labs estimated that about 1.63% of USDT transaction volume, or $19.3 billion, was linked to illicit activity. By comparison, roughly 0.05% of USDC transactions were tied to similar flows during the same period.
Questions around reserve quality have also persisted. S&P Global Ratings downgraded its assessment of Tether’s reserves late last year, pointing to exposure to higher-risk assets such as bitcoin and gold. Ardoino said the company has demonstrated to prospective investors the strength of its compliance tools and its cooperation with law enforcement agencies.
A highly profitable stablecoin leader
Even with these challenges, Tether remains one of the most profitable firms in the digital asset industry. A recent BDO attestation showed the company generated more than $10 billion in net profit in 2025, down 23% from the $13 billion reported the year before.
Tether currently holds $193 billion in assets backing approximately $186 billion worth of USDT in circulation, leaving $6.3 billion in excess reserves. Its $122 billion holdings in U.S. Treasurys make it one of the largest private holders of U.S. government debt worldwide.
In terms of market share, Tether continues to dominate. USDT’s circulating supply of $186 billion far exceeds Circle’s USDC, which stands at around $70 billion, according to data. Circle, which has already gone public, is set to release its fourth-quarter and full-year 2025 results on February 25.
Looking ahead
Ardoino told the Financial Times that recently signed U.S. stablecoin legislation has strengthened Tether’s position in the American market. The company has also launched USAT, a federally regulated stablecoin, with former White House crypto policy adviser Bo Hines overseeing U.S. operations.
For now, Tether’s scaled-back fundraising reflects a balance between investor caution and a business that continues to generate significant profits. Whether the company proceeds with a $5 billion raise may ultimately depend on broader crypto market sentiment and how regulatory clarity evolves in the months ahead.
