SoftBank and Ark Invest Eye $20B Funding Round for Tether

• Tether seeks $20 billion in funding, with SoftBank and ARK Investment backing the move.
• The funding round could value Tether at $500B, placing it among top private enterprises.
• Tether diversifies into Bitcoin, infrastructure, and energy, expanding beyond stablecoins.

Tether, the largest stablecoin issuer, is reportedly seeking to raise up to $20 billion in a new funding round. Major players, including SoftBank Group and ARK Investment Management, are reportedly among the potential investors. If successful, this funding could value Tether at $500 billion, placing it among the world’s most valuable private enterprises.

If the funding round goes through, Tether would be in league with OpenAI, which is negotiating to raise money at a similar $500 billion valuation. The deal is a major leap for Tether from crypto infrastructure to a global finance powerhouse. CEO Paolo Ardoino confirmed that the company is exploring fundraising with a select group of high-profile investors. However, he declined to share specifics on amounts or names.

Tether’s Q2 Profit Soars on Treasury Bill Gains

Tether has been a success owing to its profit model, the issuance of stablecoin, plus huge positions in US Treasury bills and Bitcoin holdings. During Q2 2025, the company reported a net income of $4.9 billion, up by 277% from the previous year. 

The majority of these reserves are held in US Treasury bills, predominantly short-term T-bills with maturities of three and 12 months. These low-risk assets pay fixed interest and yield predictable returns. A jump in short-term Treasury yields, fueled by the Federal Reserve’s rate increases since 2022, has proven to be a major boon for Tether.

Source: CNBC

Its holdings of US Treasury bills have swelled from none before the Federal Reserve’s rate hikes that started in 2022. Tether’s income based on these assets also surged, as yields on short-term Treasurys have risen. Now that the federal funds rate is over 5%, the yields on T-bills — which are particularly rate-sensitive, particularly as rates climb higher — have proven to be a source of significant strength for Tether’s profitability.

Tether Expands Investments in BTC and New Sectors

Apart from stablecoins, Tether is a member of the Bitcoin treasury firm Twenty One Capital, with SoftBank and Cantor Fitzgerald. The company was founded with $3.6 billion worth of Bitcoin, making it one of the largest corporate holders of the cryptocurrency at the time.

The diversification strategy is part of Tether’s plan to decrease dependence on its core stablecoin business. CEO Paolo Ardoino has suggested that there are new business lines in the offing, such as infrastructure and energy production, indicating a more expansive growth strategy. The pivot was first revealed in late 2023, a major move from being based on stablecoins.

Related: Tether Unveils USAT under GENIUS Act, Appoints Bo Hines as CEO

Tether also made its first crypto venture capital investment in 2024 when it injected money into Arcanum Capital. This is the company’s introduction to a new business sector in its quest to develop a more diversified portfolio.

The firm aims to deploy a USD-pegged stablecoin for the U.S. market, thereby expanding its presence. With $173.57 billion worth of USDT tokens already in circulation, Tether’s market leadership is unassailable when it comes to stablecoins.

This move is expected to challenge Tether’s competitors, particularly USDC, as institutional confidence in stablecoin infrastructure grows. The funding round would position Tether far ahead of its rivals in terms of wealth.

The possible $20 billion investment could enhance stablecoins and make them a key part in global finance rather than just a niche tool for crypto traders. Tether’s ascent to a $500 billion valuation would make it a brash new force in finance. This change would also redefine the position of digital assets, incorporating them more into the traditional financial systems.

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