• Tether is in early talks to raise $20 billion at a $500 billion valuation.
• SoftBank and Ark Investment may join the funding round for the largest stablecoin issuer in the world.
• Tether plans to launch a new US dollar stablecoin to enter the regulated United States market.

Tether, the creator of the largest stablecoin USDT in the world, is said to be in initial discussions to raise $20 billion. The financing round may come with a valuation worth $500 billion, making the company one of the most valuable private companies in the world. Some prime technology investors, such as SoftBank and Ark Investment Management, have already shown interest in the firm. These deliberations are still in progress and are yet to be resolved. 

This would mark Tether’s largest external fundraising effort to date. The possible investment round is an important landmark in the stablecoin sector that has observed an unprecedented growth in 2025.

Investment Talks Include Major Names in Finance

SoftBank and Ark Investment are among several investors in early-stage discussions. Cantor Fitzgerald, reportedly a shareholder in Tether, is advising on the potential deal. All three firms are also partners in Twenty One Capital, a bitcoin treasury company launched with $3.6 billion in bitcoin holdings.

SoftBank and Ark Investment have built reputations for backing high-growth tech companies. Their potential involvement suggests a strong interest in Tether’s expanding business model. While Tether has publicly denied plans to raise capital, reports suggest otherwise. The firm may be exploring investor appetite and market conditions before making any official announcement.

Tether Targets U.S. Market with New Stablecoin

The company has announced plans to enter the U.S. market with a new USD-pegged token, named USAT. This new product is designed to comply with the GENIUS Act, the first federal legislation to regulate stablecoins. Tether’s U.S. expansion comes with a leadership change. The company appointed Bo Hines, a former government crypto policy advisor, to head its U.S. unit.

The growth of Tether is an indication of a move from less-regulated markets into more controlled markets. The acquisition of the firm in the U.S. market might place it directly in competition with the current players, such as Circle. 

Stablecoin Market Sees Surge in Interest and Value

The stablecoin sector has seen 40% growth this year, reaching $287 billion in value. Analysts project that figure could rise to $4 trillion in a bullish scenario. Tether leads the sector with $173 billion in circulation. Most of this is backed by U.S. Treasury holdings, which have generated significant profits.

The company was financially strong as it reported $4.9 billion in profits in Q2 2025. Circle, which opened its IPO this year, also saw a surge in investor interest. Its share value soared from $30 to $300, which indicated an increase in demand for exposure to stablecoins.