- The company is reportedly seeking between $15 billion and $20 billion in exchange for a stake of about 3%.
- Ark, headed by Cathie Wood, has previously invested in Circle Internet Financial.
Tether Holdings SA is in talks with potential backers including SoftBank Group Corp. and Ark Investment Management LLC for a funding round that could value the company at as much as $500 billion, according to sources cited by Bloomberg.
The stablecoin issuer is seeking $15 billion to $20 billion in exchange for a stake of about 3% through a private placement. The discussions are at an early stage, and none of the parties have confirmed commitments.
Tokyo-based SoftBank, led by Masayoshi Son, has a track record of investing in large-scale technology ventures. Ark, headed by Cathie Wood, has previously invested in Circle Internet Financial, Tether’s closest rival in the stablecoin market. Their involvement could provide additional credibility for Tether as it seeks wider adoption.
See Related: Crypto Giants Coinbase, Circle, BitGo Eyeing U.S. Bank Charters
Political And Financial Legitimacy
Tether has faced scrutiny in the United States over concerns about its use in illicit transactions. Support from established investors could strengthen its position as it looks to expand in regulated markets. Cantor Fitzgerald LP is advising Tether on the fundraising and manages custody of its assets.
Tether’s USDT token is pegged to the US dollar and is widely used to move funds outside traditional banking systems. The company invests reserves backing the token in cash and liquid securities such as US Treasuries, generating interest income. Tether’s circulation stands at about $174 billion, compared with Circle’s $74 billion, according to CoinMarketCap.
If Tether achieves a $500 billion valuation, co-founder and chairman Giancarlo Devasini’s holdings would be worth nearly $224 billion, according to Bloomberg calculations. Chief Executive Paolo Ardoino continues to oversee the company’s expansion.
