Tether Scales Back $500B Fundraise Hype — Sources Say $5B Raise Likely

Tether has quietly scaled back a headline-grabbing fundraising plan that briefly put a half-trillion-dollar valuation in the headlines, sources told the Financial Times.

Background and rollback
Earlier reporting that Tether was preparing to raise up to $20 billion—implying a valuation near $500 billion—has been softened by the company. CEO Paolo Ardoino told the FT the $500 billion figure is a “misconception,” describing it as the maximum the company was prepared to sell rather than a firm target. Still, people familiar with the matter said advisers including Cantor Fitzgerald have discussed a much smaller $5 billion raise after hitting resistance from potential investors.

How the raise would work
Sources say the talks, which first surfaced in September, envisioned issuing new equity (not a secondary sale of existing shares) and were limited to a small group of high-profile investors. Ardoino confirmed Tether has seen “a lot of interest” at that lofty valuation, but that insiders are undecided on how much equity they would actually part with.

Why momentum cooled
Momentum behind the push was bolstered by greater regulatory clarity—U.S. stablecoin legislation and Circle’s successful public debut were cited as tailwinds—but investor appetite softened amid a weak crypto market and lingering regulatory concerns specific to Tether. FT sources say negotiations remain active and could change if market conditions improve.

Regulatory and financial backdrop
Ardoino stressed Tether’s compliance capabilities and cooperation with law enforcement as defenses against regulatory risk. Still, S&P Global Ratings downgraded Tether’s reserves to its weakest tier, citing increased exposure to higher-risk assets such as Bitcoin and gold. Tether’s profits fell in 2025 versus the prior year, a slump Ardoino attributed in part to Bitcoin’s recent underperformance.

Gold gains and market position
Despite challenges, USDT remains the dominant stablecoin with a market cap north of $185 billion. Tether has also expanded its gold holdings; Ardoino said those positions returned roughly $8–10 billion during the recent precious-metal rally.

What this means
The episode highlights the gap between Tether’s market prominence and investor caution: bullish valuations have supporters, but regulatory uncertainty and recent financial headwinds are tempering demand for a major equity sale. Talks are ongoing, and any decisive move will likely hinge on broader market recovery and how regulators continue to shape the stablecoin landscape.

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