Tether Holdings is preparing for one of its biggest funding rounds, with two global investors now in talks to join. SoftBank Group and Ark Investment Management are considering participation in the deal. This could place Tether among the world’s most valuable private firms.
Tether Aims for $500 Billion Valuation as SoftBank and Ark Target Stakes in the Company
According to a Bloomberg report, the stablecoin issuer is seeking between $15 billion and $20 billion in exchange for a roughly 3% stake. If successful, the round could push Tether’s valuation as high as $500 billion. That would put it in the same league as the largest private companies globally.
SoftBank, led by Masayoshi Son, has a record of backing bold technology ventures. It has invested heavily in areas like semiconductors, self-driving cars, and artificial intelligence. Ark, led by Cathie Wood, has previously invested in Circle, which directly competes with Tether.
Recently, Ark backed a $300 million Solana treasury initiative by Solmate. Circle’s USDC stablecoin currently have a market value of around $74 billion, while Tether’s token supply is worth more than $173 billion.
The funding effort comes as the company tries to boost its profile with traditional finance and governments. Tether is also preparing to launch a U.S.-based stablecoin, USAT, with Bo Hines as CEO. This further signal its push into regulated markets.
Tether remains the largest issuer of the dollar-pegged digital asset. Its stablecoin, USDT, allows individuals to transfer money all over the world, without relying on banks. Tether invests its capital on short-term instruments such as U.S Treasuries and makes billions in interest.
Tether’s Mega Raise Could Redefine Stablecoins’ Role in Global Finance
Tether’s leadership is headed by Chief Executive Paolo Ardoino and co-founder Giancarlo Devasini. Devasini, the largest shareholder and chairman, could see his personal fortune grow dramatically if the company hits the projected valuation. Bloomberg estimates his stake could be worth around $224 billion, surpassing the net worth of Warren Buffett.
If the firm secures the targeted funds, it would confirm strong investor confidence in stablecoins. It would also prove that these digital assets are key to moving funds globally. U.S. regulators are beginning to acknowledge this fact. The CFTC recently launched a stablecoin collateral initiative for derivatives markets.
Cantor Fitzgerald, led for years by Howard Lutnick, is advising Tether on the deal and also serves as custodian of the company’s assets. Lutnick now holds a role as U.S. Commerce Secretary, further tying the firm to Washington.
In addition, the funding round would provide Tether with massive capital as it attempts to attract more users. The deal would also be one of the largest crypto-funding rounds ever.
Source: https://coingape.com/ark-invest-eyes-tether-stake-as-firm-targets-500b-valuation/
