Is Tether worth $500 billion after revised fundraising talks?

• Tether CEO Paolo Ardoino says earlier $15–$20 billion ranges were hypothetical and not firm fundraising targets
• Reports link Tether talks to a potential $500 billion valuation as USDT circulation reaches $187 billion and profits rise

Tether is again in the spotlight after its chief executive moved to counter reports that the stablecoin issuer had stepped back from ambitious fundraising plans tied to a prospective $500 billion valuation. Comments from CEO Paolo Ardoino on Wednesday sought to clarify how the company views past discussions with potential investors, following coverage that suggested a reduction in its capital-raising goals.

Tether valuation talks and fundraising ranges

Reports about Tether’s fundraising intentions intensified after the Financial Times wrote that the company had scaled down its ambitions in response to investor resistance to a proposed $500 billion valuation. According to the newspaper, which cited unnamed people familiar with the talks, advisers to Tether had raised the possibility of securing as little as $5 billion. That figure contrasted with earlier reports from the previous year, which said the company was exploring a raise in the range of $15 billion to $20 billion.

Ardoino, speaking to Reuters, disputed the interpretation that Tether had a firm target in that higher range or that it had reversed course because of investor pushback. He said the numbers had been discussed only as an upper bound under hypothetical scenarios rather than as a concrete objective for capital raising. In his account, the figures were not part of a finalized fundraising plan, but examples explored in the course of broader strategic conversations.

The CEO also said there was notable investor interest at a valuation of $500 billion, pushing back on the idea that the market had rejected that figure outright. He emphasized that any engagement with potential backers was being shaped by what he called the company’s ethos and an emphasis on long-term alignment. Ardoino stressed that discussions were not driven by urgency or by an effort to secure the largest possible sum, signaling a preference for selective participation over rapid fundraising.

Market position of tether and stablecoin dominance

Based in El Salvador, Tether is the company behind USDT, which has grown into the most widely used stablecoin tied to the U.S. dollar. The token is designed to mirror the value of the dollar and is used across cryptocurrency markets as a trading and settlement asset. There are $187 billion worth of USDT tokens in circulation, underlining the scale of its footprint in digital asset trading and cross-exchange liquidity.

Tether’s role in the stablecoin sector is tied to its strategy of creating cryptocurrencies that track traditional fiat currencies. By linking tokens to existing currencies, the group aims to limit the price swings typical of many other cryptocurrencies. These products allow traders and institutions to move value between different digital assets without leaving the crypto ecosystem, which can streamline transfers and reduce the need to convert repeatedly back into bank-held dollars or other fiat money.

The company’s position has strengthened as it has expanded this model. Stablecoins pegged to mainstream currencies have become central tools for exchanges, market makers, and users managing exposure to volatility. Tether’s scale gives it a significant presence in this segment, where transaction speed, liquidity, and perceived stability are key factors in adoption.

Profit outlook and prior private placement reports

Questions about Tether’s valuation have also been shaped by its recent profitability. Ardoino told Reuters last month that the firm’s profit in 2026 is expected to exceed the more than $10 billion it was estimated to earn in 2025. He added that 2026 profit could also surpass the $13.7 billion that Tether was said to have generated in 2024. These figures frame the financial backdrop for any discussions about equity stakes and company value.

Earlier, Bloomberg News reported in September that Tether was seeking between $15 billion and $20 billion in a private placement. That fundraising would have been for about a 3% interest in the company and implied a valuation that could reach as high as $500 billion. The report linked the size of the raise and the stake on offer to the prospective valuation now at the center of debate.

Ardoino’s recent remarks underscore his view that those earlier ranges were not hard fundraising goals but part of exploratory talks with potential investors. By presenting the upper-end figures as hypothetical, he is attempting to reframe market expectations around how aggressively Tether intends to pursue new capital and on what terms.

Conclusion

Recent comments from Tether’s CEO highlight a gap between how the company’s fundraising discussions have been portrayed and how its leadership characterizes them. While reports have focused on changing ranges and investor reactions to a possible $500 billion valuation, Ardoino maintains that earlier figures were illustrative rather than prescriptive. Against that backdrop, Tether continues to occupy a central role in the stablecoin market through its USDT token, with $187 billion in circulation and a profit outlook that, by its own estimates, points to rising earnings through 2026.

Disclaimer

The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from CryptoNewsBytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from any company.

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