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Tether’s Pursuit of a $500 Billion Valuation Puts It Alongside Tech Titans, Supported by SoftBank and Ark

Tether’s Pursuit of a $500 Billion Valuation Puts It Alongside Tech Titans, Supported by SoftBank and Ark

Bitget-RWA2025/09/26 16:56
By:Coin World

- SoftBank and Ark lead $15-20B Tether funding round, valuing the stablecoin issuer at up to $500B. - The deal would grant institutional investors 3% equity, positioning Tether among top private tech companies. - Backing by major investors aims to enhance Tether's credibility amid regulatory scrutiny and boost mainstream adoption. - Tether's $173.5B market cap and reserve structure face scrutiny, though it emphasizes transparency through regular audits. - The funding aligns with crypto trends, potentially

Tether’s Pursuit of a $500 Billion Valuation Puts It Alongside Tech Titans, Supported by SoftBank and Ark image 0

SoftBank Group Corp. together with

Investment Management LLC are reportedly nearing a deal to spearhead a significant fundraising round for Holdings SA, which could see the stablecoin company valued as high as $500 billion. Such a valuation would rank Tether among the most valuable private firms globally, putting it in the same league as technology leaders like and . According to Bloomberg News, the company is seeking to raise between $15 billion and $20 billion in exchange for about a 3% ownership stake. Should the deal go through, it would be one of the largest private equity investments ever made in the crypto industry.

Tether, which issues the widely adopted stablecoin

, has previously come under regulatory scrutiny, especially in the United States, due to concerns over its involvement in unlawful financial activities. Nevertheless, the participation of major institutional players like SoftBank and Ark could enhance Tether’s reputation and help drive broader acceptance. SoftBank, under the leadership of founder Masayoshi Son, is known for its bold investments in technology, including a $30 billion stake in OpenAI. Ark, led by Cathie Wood, has already backed Circle Internet Group, a competitor in the stablecoin market with a valuation of around $74 billion, compared to Tether’s $173.5 billion in user-held tokens.

The transaction is being guided by Cantor Fitzgerald LP, a New York investment bank headed by U.S. Commerce Secretary Howard Lutnick. Cantor Fitzgerald also manages the custody of Tether’s assets, providing an added level of institutional oversight. Tether’s business depends on its reserves—primarily U.S. Treasuries and cash equivalents—to earn interest while maintaining its dollar peg. If Tether reaches a $500 billion valuation, Bloomberg estimates that chairman and co-founder Giancarlo Devasini’s stake would be worth $224 billion.

This fundraising effort reflects a broader movement within the crypto space, where stablecoins have become essential for decentralized finance (DeFi) and international payments. Tether’s leading role in the market, with more than $82 billion in USDT circulating on the

blockchain alone, highlights its importance. Still, regulatory issues remain, especially in regions where there are ongoing debates over stablecoin transparency and reserve sufficiency. The support from SoftBank and Ark may indicate a new direction for Tether, focusing more on regulatory cooperation and institutional credibility.

SoftBank’s involvement is consistent with its ongoing investments in transformative technologies, including AI and blockchain. Its recent funding of OpenAI and moves into DeFi-related projects show its commitment to being a leader in the digital economy. At the same time, Ark’s interest in Tether fits with its broader belief in the tokenization of traditional assets, a trend gaining traction with the emergence of tokenized stocks and real-world asset (RWA) initiatives.

The possibility of Tether reaching a $500 billion valuation brings up questions about how scalable its reserves are and whether its interest-earning model can be sustained. While Tether’s current reserves are thought to exceed $100 billion, a large capital injection would require strong asset management and adherence to regulations. Critics have previously pointed out the risks of Tether’s reserve concentration, especially its dependence on short-term U.S. government bonds. However, Tether’s leadership has stressed its dedication to openness, releasing regular reserve reports since 2023.

The final outcome of these funding talks is still unknown, as both Tether and SoftBank have not issued any statements. Ark has also not provided any comments. If the investment goes ahead, it would be a landmark event for Tether, reinforcing its status as a key player in the global stablecoin market while it navigates changing regulatory requirements. The entry of institutional investors could also set a new standard for future crypto fundraising, an area where private valuations have often trailed those of public markets.

Source: [1] SoftBank, Ark in Talks to Invest in Tether’s Major Funding Round

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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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