Tether Hits $500B: Stablecoins Laying the Foundation for a Tech Powerhouse
- Tether seeks $20B in funding via 3% equity, targeting a $500B valuation, with SoftBank and Ark Invest in early talks. - The deal would make chairman Giancarlo Devasini the fifth-richest person, with a $224B stake, and elevate Tether to tech giant status. - USDT's $173.5B market cap dwarfs rivals, but regulatory scrutiny over reserves and illicit finance ties persists. - Cantor Fitzgerald's dual role as adviser and custodian raises conflict concerns, while Tether expands U.S. operations with GENIUS Act co
Tether Holdings SA, the company behind the world’s leading stablecoin
SoftBank and Ark Invest, both recognized for their bold investments in technology, are among the select investors involved in early negotiations. SoftBank, under Masayoshi Son, has previously backed ventures in artificial intelligence, chips, and OpenAI, while Ark Invest, led by Cathie Wood, has invested in
Cantor Fitzgerald LP, a New York-based investment bank, is serving as Tether’s advisor for the transaction and is also responsible for managing its reserves. Howard Lutnick, Cantor’s former CEO and now U.S. Commerce Secretary, maintains connections to the firm’s activities. Tether’s profits are largely driven by interest from its reserves, which are mostly held in short-term government securities. However, the company has faced regulatory challenges over alleged links to illegal financial activities, prompting efforts to enhance its legitimacy.
Tether’s recent moves in the U.S., including the introduction of a new stablecoin that complies with the GENIUS Act, signal a strategic shift toward regulatory approval. The company has also brought on Bo Hines, a former White House crypto advisor, to oversee its American operations. Meanwhile, Cantor Fitzgerald’s dual function as both advisor and asset manager has raised concerns about potential conflicts of interest, though its extensive experience with major deals makes it a crucial partner in this fundraising.
If Tether achieves a $500 billion valuation, it would stand alongside private tech powerhouses like OpenAI and join the ranks of top pre-IPO unicorns. For its leadership, this deal could dramatically alter wealth rankings: CEO Paolo Ardoino and former CEO Jean-Louis van der Velde might each see their net worth reach $95 billion, overtaking Binance’s Changpeng Zhao. These developments underscore the rapid rise of stablecoins, which have grown 40% this year to a $287 billion market, with Citi projecting a potential $4 trillion market by 2030 in an optimistic scenario.
Despite the positive outlook, Tether’s future depends on regulatory developments and continued investor trust. The company’s dependence on U.S. Treasuries for returns and its lack of transparency regarding reserves have drawn scrutiny from regulators and oversight groups. As SoftBank and Ark Invest consider their involvement, the results of this funding round are likely to influence the direction of stablecoin innovation and institutional adoption in the global financial system.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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