Tether Holdings Explores Massive Funding Round
Tether Holdings, a prominent player in the stablecoin market, is reportedly exploring a funding round that could reach up to $20 billion, potentially valuing the company at around $500 billion.
According to Bloomberg, sources familiar with the matter indicate that Tether is considering raising between $15 billion and $20 billion in return for approximately a 3% stake via private placements, with Canter Fitzgerald as the lead advisor.
It’s worth noting that some sources have cautioned that the final funding amount could end up being much lower, as discussions are still in the early stages.
For context, OpenAI, the company behind ChatGPT, is also in talks regarding possible pay increases at a valuation of $500 billion, as reported by the New York Times.
In contrast to OpenAI, Tether doesn’t have as widespread recognition outside the crypto community, yet it has become one of the most profitable firms globally on a per-employee basis. The company posted profits of $4.9 billion in the second quarter alone, bringing its total to $5.7 billion for the preceding year.
Cointelegraph reached out to Tether for comments but didn’t receive a response before publication. Meanwhile, Bloomberg noted that Bo Hines, the newly appointed CEO of Tether USAT, mentioned in a meeting in Seoul that there were no immediate plans for additional fundraising.
Tether Stays at the Forefront Amidst Growing Stablecoin Adoption
Tether’s USDT remains the largest dollar-backed stablecoin in circulation, holding a market capitalization of $172.8 billion. This represents about 56% of the total $307.2 billion stablecoin market, according to CoinMarketCap.
The global adoption of stablecoins is on the rise, offering efficient and low-cost alternatives for transactions while expanding financial access. In the U.S., new legislation aimed at managing the dollar has been introduced, providing a regulatory framework for issuers.
Tether isn’t alone in capturing attention with its significant valuation. Earlier this year, Circle Internet Group, which issues the USDC stablecoin, experienced a remarkable debut, increasing over 160% and securing a valuation exceeding $18 billion. Its market value has since climbed to almost $33 billion.
