Tether has quietly pulled back from plans for a massive fundraising round amid investor resistance to a $500 billion valuation.
By Parth Dubey
Editor Hamza Tariq
Updated
2 mins read
Tether has scaled back plans for a large funding round after investors pushed back on its $500 billion valuation target.
The company had previously explored raising $15 billion to $20 billion, which would have placed it among the most valuable private firms globally.
Advisers are now discussing a much smaller raise, potentially as low as $5 billion.
This follows investor hesitation around valuation rather than concerns about liquidity. Tether remains highly profitable and is under no pressure to raise capital.
https://twitter.com/WuBlockchain/status/2018919272786079847
Tether generated roughly $10 billion in profit last year, driven mainly by yield on reserves backing USDT.
The company controls the world’s largest stablecoin, with around $185 billion to $187 billion in circulation, and operates with a tight internal ownership structure.
Insiders have shown little interest in selling equity, which has limited the size of any potential deal. Management has stated that selling no shares at all remains an acceptable outcome.
Tether’s balance sheet now resembles that of a large financial institution.
According to its latest January attestation, the company holds more than $122 billion in direct US Treasuries, with total Treasury exposure exceeding $141 billion when including short-term lending agreements.
Alongside government debt, Tether has built one of the largest private gold positions in the world.
Its reserves and tokenized gold product together account for roughly 80 to 116 metric tons of gold, with around 27 tons added in the fourth quarter of 2025 alone.
For now, fundraising talks remain active but flexible.
The final size of any raise will depend on market conditions, investor appetite, and whether Tether decides it needs outside capital at all.
The fundraising rethink comes alongside Tether’s debut of USAT, a US-regulated stablecoin issued through Anchorage Digital Bank.
USAT is the company’s first product fully compliant with new federal stablecoin rules in the United States.
The stablecoin is separate from USDT, which has roughly $185 billion in circulation globally but does not meet current US regulatory standards.
The launch places Tether in direct competition with Circle’s USDC, as well as new entrants from Fidelity, JPMorgan, and PayPal.
Unlike past years, Tether executives are now actively engaging with US policymakers and law enforcement as well.
The company says it works with nearly 300 law enforcement agencies across more than 60 countries.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
A crypto journalist with over 5 years of experience in the industry, Parth has worked with major media outlets in the crypto and finance world, gathering experience and expertise in the space after surviving bear and bull markets over the years. Parth is also an author of 4 self-published books.
