Tether’s Ambitious $20B Funding Round Signals Record $500B Valuation in 2025
Focus Keyword: Tether funding round
Tether, the world’s leading stablecoin issuer, is reportedly seeking to raise between $15 billion and $20 billion in a major funding round, aiming for a staggering $500 billion company valuation. This move would place Tether among the ranks of global tech giants and marks a pivotal moment in the digital asset landscape.
Tether Funding Round Could Transform the Digital Asset Industry
According to CEO Paolo Ardoino, the Tether funding round will be offered to a select group of high-profile investors. The goal is to amplify Tether’s reach and impact across both current and emerging business areas, including stablecoins, artificial intelligence, commodity trading, energy, communications, and media.
Tether plans to release new equity in this investment round, rather than existing investors selling their shares. The company has brought on Cantor Fitzgerald as the lead adviser for the transaction. With a successful raise, Tether’s valuation would soar to $500 billion, vastly outpacing its closest competitor—publicly traded Circle, which holds a valuation of about $30 billion.
For context, Tether generated $4.9 billion in profits in the second quarter of this year alone, boasting an impressive 99% profit margin. These strong financials underscore the company’s robust business model and ability to capitalize on stablecoin reserves, primarily invested in secure US government assets.
Regulatory Shifts and US Market Expansion
After facing regulatory challenges under the previous US administration, Tether is now making plans to re-enter the American market, supported by a more favorable regulatory climate. The company recently appointed former White House digital asset official Bo Hines as CEO for its US operations and launched USAT, a new US-regulated stablecoin. USAT is set to comply with the recently passed GENIUS Act, which provides a regulatory framework for stablecoins in the United States.
Market experts, such as Ram Ahluwalia of Lumida Wealth Management, have described Tether as one of the world’s most lucrative companies. Meanwhile, industry analysts believe that Tether’s expansion and capital influx could intensify competition, potentially challenging the future of its rivals.
Stablecoin Growth: Tether’s Supply Reaches New Heights
The supply of Tether’s USDT has surged to an all-time high of $173 billion, commanding a 56% share of the entire stablecoin market. In comparison, its next largest competitor holds a 25% market share with a $74 billion supply. This remarkable growth—26% since the start of the year—has been fueled by rising demand for stablecoins and supportive legislative developments like the GENIUS Act.
Industry data indicate that the overall market capitalization for stablecoins is rapidly approaching a historic $300 billion milestone. For further information on stablecoin market trends, see the latest Forbes analysis.
What Does the Tether Funding Round Mean for Crypto?
The unprecedented scale of the Tether funding round signals growing institutional confidence in the stablecoin sector. As Tether diversifies into new business verticals and strengthens its US presence, its influence over the global digital asset industry is set to rise even further. All eyes are now on Tether as it pursues this historic raise and reshapes the competitive landscape of stablecoins and beyond.
