Tether Holdings, a leading player in the stablecoin sector, is reportedly considering a fundraising round of up to $20 billion, which would value the company at around $500 billion, placing it among the most valuable private companies globally.
According to Bloomberg, which cites knowledgeable sources, Tether is looking to raise between $15 billion and $20 billion in exchange for approximately a 3% equity stake via a private placement, with Cantor Fitzgerald serving as the lead adviser.
However, one source warned that the final amount might be considerably lower, as discussions are still in the early stages.
For context, OpenAI — the creator of ChatGPT — has also been reported to be negotiating a potential funding round at a $500 billion valuation, as indicated by The New York Times.
While Tether may not have the mainstream recognition of OpenAI, it has quietly established itself as one of the most profitable companies worldwide on a per-employee basis. The firm recorded a profit of $4.9 billion in the second quarter alone, bringing its total profit for the year to $5.7 billion.
Cointelegraph reached out to Tether for a comment, but did not receive a reply by the time of publication. Meanwhile, Bloomberg reported that Bo Hines — the newly appointed CEO of Tether USAT, a stablecoin issuer focused on the U.S. market — stated at a conference in Seoul on Tuesday that the company has no intention of raising additional funds.
Related: Tether to launch USAT, names ex-Trump adviser as CEO
Tether maintains leadership as stablecoin adoption heats up
Tether’s USDt (USDT) continues to be the largest dollar-backed stablecoin in circulation, boasting a market value of $172.8 billion, according to CoinMarketCap. This equates to about a 56% share of the $307.2 billion stablecoin market.
The global adoption of stablecoins has surged as they provide a cost-effective and efficient method for transferring money, enhancing financial accessibility, and acting as an entry point for blockchain applications. In the U.S., the recently enacted GENIUS stablecoin bill seeks to maintain the dollar’s dominance by instituting clear regulations for issuers.
In this landscape, Tether is not the only entity potentially attracting impressive valuations. Earlier this year, Circle Internet Group — the issuer of USDC (USDC) — chose to go public, skyrocketing over 160% on its debut to achieve a valuation exceeding $18 billion. Since then, Circle’s market value has approached nearly $33 billion.
Related: Crypto Biz: Wall Street giants bet on stablecoins
