Tether Reaches $500B Valuation: Regulatory Compliance Fuels Growth into Mainstream Financial Sector

Tether Holdings SA, the company behind the world’s leading stablecoin

, is said to be in preliminary talks with Japan’s SoftBank Group Corp. and Investment Management LLC to secure as much as $20 billion in a funding round that could value Tether at $500 billion. Should this valuation be achieved, would rank among the world’s most valuable private companies, outpacing the market worth of many publicly listed firms. The planned fundraising, which would involve selling a 3% equity stake, highlights the increasing institutional appetite for stablecoins—a market that Citi analysts predict could reach $4 trillion in value under optimistic projections Tether (USDT) Fundraising Interest Reportedly From Softbank, Ark … [ 1 ].

With a market cap of $173 billion, Tether’s USDT remains a dominant player in the stablecoin sector, which has grown 40% this year to $287 billion. The company’s profits have soared, largely thanks to investments in U.S. Treasuries, generating $4.9 billion in earnings for the second quarter of 2025. This ambitious fundraising effort supports Tether’s push into the U.S. market with a new token, USAT, designed to comply with the GENIUS Act—the first federal crypto regulation in the country. This initiative is part of Tether’s broader strategy to gain regulatory acceptance in major markets SoftBank, Ark in Talks to Invest in Tether’s Major Funding Round [ 2 ].

Both SoftBank and Ark Invest, recognized for their expertise in technology investments, would add considerable weight to the deal. SoftBank, under Masayoshi Son, is known for its bold investments in emerging technologies, including a proposed $30 billion commitment to OpenAI. Ark, led by Cathie Wood, has previously backed

Internet Financial, Tether’s chief rival, which recently went public and saw its stock price jump from $30 to $300. Collaborating with these firms could help Tether accelerate its entry into mainstream financial and tech sectors, leveraging their extensive networks and industry knowledge How Tether Plans for $500 Billion Fundraising and Possible IPO [ 3 ].

Cantor Fitzgerald LP, a long-time partner of U.S. Commerce Secretary Howard Lutnick, is advising on the fundraising. This relationship underscores Tether’s calculated approach to navigating U.S. regulatory requirements, which is crucial for its growth ambitions. Giancarlo Devasini, Tether’s chairman, owns about 47% of the company—a stake that would be worth nearly $224 billion at the proposed valuation. Such a figure would make Tether the world’s largest private stablecoin issuer by market value, overtaking Circle’s

, which currently has a $74 billion market cap SoftBank, Ark in Talks to Invest in Tether’s Major Funding Round [ 4 ].

Experts point out that the timing of this capital raise coincides with broader industry trends. The stablecoin market is expanding due to increasing demand for quicker, lower-cost international payments and the growth of tokenized assets. Tether’s planned U.S. expansion with USAT, along with its established presence in developing markets, positions it well to benefit from this momentum. Nonetheless, the company still faces hurdles, such as regulatory concerns over the use of stablecoins in illegal activities and the need for greater transparency around its reserves. Recent hires, including Bo Hines, a former White House crypto policy advisor, indicate Tether’s renewed focus on regulatory compliance Tether (USDT) Fundraising Interest Reportedly From Softbank, Ark … [ 5 ].

While Tether has not officially announced plans for an IPO, such a move is widely seen as a logical progression after the fundraising. Going public could boost liquidity and visibility, much like Circle’s successful listing earlier this year. For now, Tether is concentrating on attracting major investors and finalizing the deal. Both SoftBank and Ark have declined to comment, but their participation—if confirmed—would represent a significant milestone in Tether’s transformation from a stablecoin provider to a major player in global financial infrastructure How Tether Plans for $500 Billion Fundraising and Possible IPO [ 6 ].