In a bold move that highlights its dominance in the stablecoin sector, Tether Holdings SA, the issuer of the world's largest stablecoin USDT, is reportedly seeking to raise as much as $20 billion in a private share sale. This fundraising effort targets a staggering $500 billion valuation, positioning Tether among the most valuable private companies globally, comparable to giants like SpaceX and OpenAI.
According to Bloomberg reports from December 12, 2025, the company is in advanced discussions led by top-tier global investment banks. The raise would involve selling approximately 3-4% of equity, attracting interest from strategic investors such as SoftBank and Ark Invest, as mentioned in earlier talks.
This capital infusion aims to fuel Tether's expansion into new ventures, including AI, commodity trading, energy, and media, while bolstering its core stablecoin operations.
Blocking Discounted Sales to Protect Valuation
The fundraising comes amid internal efforts to maintain pricing discipline. Tether recently intervened to halt at least one existing shareholder from selling a stake - valued at around $1 billion - at a significant discount, implying a company valuation of only $280 billion. Management viewed such off-market sales as a threat to the ongoing raise, potentially undermining investor confidence.
In a statement to Bloomberg, Tether emphasized that it would be "imprudent and reckless" for investors to bypass the official process. The company confirmed it received assurances that these unauthorized sales would not proceed, ensuring the targeted $500 billion valuation remains intact.
Providing Liquidity Through Buybacks and Tokenization
With no immediate plans for an initial public offering (IPO) - despite occasional speculation - Tether recognizes the need for liquidity options for early investors and employees who might otherwise wait years for an exit.
To address this, executives are exploring two primary mechanisms post-raise:
- Share Buybacks: A traditional approach where the company repurchases its own shares, similar to strategies employed by Ripple and Revolut to provide interim liquidity without going public.
- Equity Tokenization: Leveraging blockchain to create digital representations of Tether's shares. This would allow secondary trading on compliant platforms, offering faster and potentially lower-cost exits compared to private secondary markets.
Tokenization aligns perfectly with Tether's expertise in digital assets. In November 2024, the company launched Hadron by Tether, a dedicated platform that simplifies the tokenization of real-world assets (RWAs) such as stocks, bonds, commodities, funds, and even loyalty points.
Hadron supports multiple blockchains, incorporates robust KYC/AML tools, and has already positioned Tether as a leader in the growing RWA space, which has tripled to around $18-30 billion in 2025.
If Tether tokenizes its own equity via Hadron, it could set a groundbreaking precedent, blending traditional private equity with on-chain liquidity and attracting institutional interest in tokenized securities.
Tether's Unparalleled Profitability and Market Dominance
The ambitious valuation is underpinned by Tether's extraordinary financial performance. USDT currently has a market capitalization exceeding $186 billion, representing nearly 60% of the global stablecoin market. Reserves include substantial holdings in U.S. Treasuries (over $127 billion), cash equivalents, and diversified assets like Bitcoin and gold.
The company reported massive profits - $13 billion in 2024 and projections of up to $15 billion for 2025 - driven primarily by interest on reserves amid high yields. This near-99% profit margin has fueled retained earnings of over $23 billion, providing ample firepower for buybacks or expansions.
Broader Implications for Crypto and Traditional Finance
Tether's strategy reflects the maturing intersection of crypto and traditional finance. While competitors like Circle pursued a public listing, Tether's private approach - combined with tokenization - could pioneer a new model for illiquid private investments.
The tokenized RWA market, though still nascent at $18-30 billion, is projected to reach trillions by 2030, with recent regulatory greenlights (e.g., SEC approvals for tokenized assets) accelerating adoption.
However, challenges remain, including ongoing scrutiny over reserve composition (with riskier assets like Bitcoin comprising ~12-24%) and global regulatory pressures on stablecoins. Tether continues to emphasize transparency through quarterly attestations and compliance enhancements.
As the stablecoin issuer navigates this high-stakes raise, its decisions on liquidity could reshape how private companies in crypto provide exits, potentially bridging billions in traditional capital to blockchain ecosystems.
With USDT's circulation continuing to grow, Tether's next moves will be closely watched by investors worldwide.
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Author: Slava Vasipenok
Founder and CEO of QUASA (quasa.io) - Daily insights on Web3, AI, Crypto, and Freelance. Stay updated on finance, technology trends, and creator tools - with sources and real value.
Innovative entrepreneur with over 20 years of experience in IT, fintech, and blockchain. Specializes in decentralized solutions for freelancing, helping to overcome the barriers of traditional finance, especially in developing regions.
This is not financial or investment advice. Always do your own research (DYOR).
