Tether Pulls Back from $500B Valuation Fundraise; Advisers Now Eye $5B

Tether has stepped back from plans to pursue an eye-popping funding round that would have valued the stablecoin issuer at roughly $500 billion, according to a Financial Times report.

The plan, first reported in September, reportedly considered up to $20 billion in new equity—an amount that would have placed Tether among the world’s most valuable private companies. CEO Paolo Ardoino pushed back on the headline figure in an FT interview, calling the half‑trillion-dollar valuation “a misconception” and saying it was “not our goal. It’s our maximum we were ready to sell.” He also said Tether has seen “a lot of interest” at that valuation, but the company has not decided how much equity, if any, it will ultimately put on the table.

Sources told the FT that Tether’s advisers, including Wall Street desk Cantor Fitzgerald, have been forced to temper expectations after tepid investor appetite—floating a much smaller $5 billion raise as a more realistic outcome. Those conversations reportedly remain ongoing, with investor sentiment tied closely to the broader crypto market’s recovery and lingering regulatory concerns around Tether’s business.

The push for a large raise was partly driven by improved regulatory clarity—stablecoin legislation in the U.S. and rival Circle’s successful public debut helped create momentum. Still, some potential backers remain cautious about Tether’s regulatory exposure, even as Ardoino highlighted the company’s compliance capabilities and cooperation with law enforcement agencies.

Financially, Tether has faced headwinds: Ardoino said the company’s 2025 profits fell versus the prior year, attributing the decline in part to Bitcoin’s weak finish in the last quarter. S&P Global Ratings also downgraded Tether’s reserves to its weakest tier, citing increased exposure to higher‑risk assets such as Bitcoin and gold.

Despite those pressures, Tether’s USDT remains the dominant stablecoin, with a market capitalization north of $185 billion at last check. The company has also been building its gold holdings aggressively—Ardoino said those positions generated roughly $8–10 billion in gains during the recent precious metals rally.

For now, any large-scale equity sale looks uncertain: advisers have downscaled expectations, investors are weighing regulatory risks, and the ultimate size of a deal—if there is one—will depend on market conditions and Tether insiders’ willingness to dilute stakes.

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