Tether floats $5 billion raise after investor pushback on $500 billion valuation target: FT

Tether’s USDT closely watched push to raise external capital has scaled back, with advisers now floating a raise of $5 billion after investors balked at a proposed $500 billion valuation, the Financial Times reported Wednesday, citing people familiar with the matter. The figure represents a significant step down from earlier discussions that envisioned raising up to $20 billion.

The initial fundraising framework, reported by Bloomberg in September, outlined a potential $15 billion to $20 billion raise for approximately 3% of the company — a deal that would have placed Tether among the world’s most valuable private firms. While potential investors like SoftBank and Ark Investment were cited, a person involved cautioned at the time that the figures were top-end targets. 

Tether CEO Paolo Ardoino now calls those initial targets a “misconception,” telling the FT the $20 billion figure was “the maximum we were ready to sell.” He added that Tether is “extremely profitable” and has “little need for additional capital,” noting that insiders are reluctant to sell shares. 

The people told the FT that talks are ongoing and terms could still change, adding that investor sentiment may improve if the crypto market rallies. 

Meanwhile, Tether spokesperson told The Block that "misconception" and speculation have distorted the narrative around its fundraising. The representative stated that last year's figures of $15 to $20 billion were discussed as a theoretical maximum in specific scenarios, not as a target or a formal plan. The company emphasized it grows organically and does not require external capital, a position that enables high selectivity with partners. While confirming significant investor interest at the reported valuation given Tether's profitability, the spokesperson said any discussions are driven by long-term alignment, not urgency or a goal to maximize the raise.

Weighing risk against a profit engine

Would-be investors have expressed caution over regulatory and operational risks, the report said. Tether has faced scrutiny since 2014, with approximately 1.63% of USDT transaction volume linked to illicit activity in 2023, totaling $19.3 billion, according a TRM Labs report.

By comparison, roughly 0.05% of USDC volume was linked to illicit flows that year. Additional concerns include the transparency and quality of Tether’s reserves. S&P Global Ratings downgraded Tether’s reserve rating late last year, citing exposure to high-risk assets such as bitcoin and gold. 

Ardoino told the Financial Times that the company had demonstrated to prospective investors “the depth” of its tools for collaborating with law enforcement agencies.

Despite these headwinds, Tether remains a highly profitable enterprise within the digital asset sector. According to a BDO attestation, the firm generated more than $10 billion in net profit in 2025, a 23% decline from the $13 billion reported in 2024. The firm currently holds $193 billion in total assets to back a circulating supply of $186 billion in USDT, reflecting $6.3 billion in excess reserves. Its $122 billion stash of U.S. Treasurys makes it one of the largest private holders of government debt globally.

Tether’s market position remains dominant compared to its peers. According to The Block’s data dashboard, USDT’s $186 billion supply significantly leads Circle’s USDC, which holds approximately $70 billion. Circle, which previously went public, announced it will report its Q4 and full-year 2025 financial results on Feb. 25.

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Ardoino told the FT that the new U.S. stablecoin legislation signed by President Donald Trump has strengthened Tether’s position in the American market. Last week, Tether launched its federally regulated USAT stablecoin, with Bo Hines, a former White House crypto policy advisor, overseeing U.S. operations.

Updated with comment from Tether.