Tether, the issuer of the world's largest stablecoin, is in talks with investors to raise up to $20 billion, a deal that could propel the cryptocurrency company into the ranks of the world's most valuable private companies, similar to OpenAI and SpaceX.
According to Bloomberg , Tether is seeking to acquire approximately 3% of its shares through a private placement, raising between $15 billion and $20 billion. Cantor Fitzgerald will serve as lead advisor. Another person involved in the process cautioned that these are only high-level targets and the final figure could be significantly lower. The person, who was not authorized to speak publicly, said the talks are at an early stage and the details of the proposed investment are subject to change.
Potential investors have been given access to the data room in recent weeks to decide whether to participate in the new round, people familiar with the matter said. They expect the deal to close by the end of the year.
Bo Hines, Tether’s digital asset and U.S. strategic advisor, said in an interview in Seoul on Tuesday that Tether has no plans to raise capital. Other Tether representatives declined to comment. A Cantor spokesman declined to comment.
The deal could value the company at approximately $500 billion, putting it on par with OpenAI and SpaceX. This is a remarkable achievement for the lightly regulated cryptocurrency industry, which faces a surge in competition and declining U.S. interest rates, which threaten its profit margins. Its closest direct competitor, publicly traded stablecoin issuer Circle, has a market capitalization of approximately $30 billion.
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