Tether, the stablecoin behemoth beloved by crypto traders and derided by sceptics, is apparently preparing to swap its trench coat for a tuxedo. The world’s most widely used digital dollar is said to be courting investors for a US$15–20 billion raise in exchange for a sliver — about 3 per cent — of equity.
On those terms, Tether Holdings would be valued near US$500 billion, elbowing its way into the rarefied company of the world’s most valuable private firms.
This is not just another crypto fundraise. It is the equivalent of the barman suddenly being invited to sit at the high table. Stablecoins, the supposed plumbing of digital finance, are being rebranded as the main attraction.
Good news for stablecoins?
Nigel Green of deVere Group thinks so. If Tether really does bank that kind of capital, he says, the effect will be to recast stablecoins “as investable assets in their own right.” Until now, institutions have treated them as digital scaffolding: useful for propping up trades, but not something you’d put in a pension fund. A valuation approaching half a trillion dollars changes the optics.
It would also give Tether a war chest big enough to silence — or at least muffle — its critics. For years, the company has fended off suspicions about the adequacy and composition of its reserves. With $20 billion in fresh capital, it could afford to trumpet transparency, beef up disclosures, and present itself as a dependable, dollar-pegged instrument at a time when financial markets of every stripe are craving stability.
- Mercado Bitcoin becomes first LatAm exchange to list Trump coin
- Blockchain’s Flow has best three months yet
- Trident Digital Tech targets African stablecoin licences for RLUSD
That, of course, is the point. The allure of a blockchain-based dollar is straightforward: it moves faster than Swift, bypasses creaking banking pipes, and serves traders, corporates and remittance senders alike.
Tether’s USDT already underpins daily volumes in the tens of billions, lubricating crypto exchanges, DeFi protocols, and cross-border settlement. But until now, the company has never invited outsiders to take an equity stake. If the deal closes, Tether will shift from being a dominant utility to something closer to a cornerstone of the digital financial system.
Cue the ripple effects. A raise of this scale resets the bar for the entire sector. Every rival issuer — from Circle’s USDC to PayPal’s PYUSD — would be judged against Tether’s new benchmark. Investors will want better transparency, firmer reserves, and tighter regulation across the board. Far from stifling growth, that discipline could accelerate mainstream adoption.
Could Tether become a systemic risk?
Regulators, inevitably, will be watching. A half-trillion dollar company running the world’s most transacted stablecoin is no longer a curiosity — it is a potential systemic risk. Expect louder calls for audited reserves, governance standards, and regulatory oversight. Tether’s executives may bristle, but in truth, heavyweight investors will insist on precisely that level of scrutiny.
For institutions, though, the implications are tantalising. Stablecoins have sat at the margins of portfolios, tools rather than holdings. But if Tether secures this deal, they could become strategic assets: liquidity management, yield strategies, and settlement all benefit when the digital dollar is treated as a core holding rather than a sideshow.
The symbolism matters too. Crypto has always wanted mainstream validation. A Tether valuation in the same league as Saudi Aramco’s unlisted subsidiaries or ByteDance will do just that. Stablecoins, once the supporting act, would stride onto the stage as headliners.
