Tech-focused investment firms SoftBank and Ark Invest are reportedly in early-stage talks to invest in Tether, the issuer of the world’s largest stablecoin, USDT, Bloomberg reported on Friday.
This news follows earlier reports this week revealing Tether’s plans to raise up to $20 billion in a fundraising round, which would value the company at around $500 billion. Such a valuation would make Tether one of the world’s most valuable private companies, highlighting the explosive growth and investor interest in the stablecoin space.
Stablecoins are a class of cryptocurrencies with prices pegged to fiat currencies like the U.S. dollar. Proponents say stablecoins could offer a cheaper, faster alternative for cross-border transactions by leveraging blockchain technology. The sector has expanded rapidly, growing 40% year-to-date to reach $287 billion, according to data from RWA.xyz. Additionally, analysts at global bank Citi project that stablecoins could reach a market value of $4 trillion in a bull market scenario.
Tether’s USDT leads the market with a $173 billion market capitalization. It is predominantly backed by U.S. Treasuries, which have generated substantial profits from bond yields in recent years. The company reported $4.9 billion in profits in the second quarter of this year alone.
Another major player, Circle (CRCL), issuer of the second-largest stablecoin USDC with a market value exceeding $70 billion, went public in June. Since its debut, Circle’s stock price surged from around $30 to $300, underscoring strong investor appetite for exposure to the stablecoin theme.
Tether has also focused on serving emerging markets with limited access to U.S. dollars. Earlier this month, the company announced its intention to formally enter the U.S. market with a new dollar token dubbed USAT. This token is designed to comply with the GENIUS Act, the nation’s first federal crypto law that sets regulatory standards for stablecoins.
To lead its U.S. division, Tether has hired Bo Hines, the former director of the White House Crypto Council who advised President Donald Trump on cryptocurrency policies.
With substantial backing and strategic moves, Tether is positioning itself to remain a dominant force in the fast-growing stablecoin sector, which has the potential to disrupt global payment systems.
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