What's Happening?
Tether Holdings SA, the issuer of the stablecoin USDT, is reportedly aiming for a $500 billion valuation through a new funding round. The company plans to raise between $15 billion and $20 billion by offering a 3% equity stake to select investors. CEO Paolo Ardoino confirmed that the capital raise would be structured as a new equity issue. The funds are intended to expand Tether's business areas, including stablecoins, AI, commodity trading, and media. Tether is also looking to strengthen its presence in the U.S. market, with plans to launch a U.S.-based stablecoin, USAT, compliant with the GENIUS Act.
Why It's Important?
Tether's ambitious funding round and valuation target reflect its growing influence in the cryptocurrency sector. Achieving a $500 billion valuation would place Tether among the most valuable private companies globally, alongside giants like OpenAI and SpaceX. The move signals Tether's intent to expand its market presence and diversify its business operations. The introduction of a U.S.-based stablecoin could significantly impact the regulatory landscape for digital assets in the U.S., potentially influencing other companies to follow suit.
