Tether faces two-week deadline as it pursues a $500 billion valuation in private fundraising

Tether, the issuer of the world’s largest stablecoin, is seeking to close a fundraising at a valuation of $500 billion, but the process is under tight time pressure. According to The Information, investors have two weeks to commit to the private funding round; if the targeted commitments are not reached, the company could postpone the operation.

Two-week deadline and a $500 billion target

The Information reports that Tether set a two-week deadline for potential investors to confirm their participation. If commitments do not reach the targeted amounts, the company could postpone the fundraising.

The planned valuation is $500 billion, tied to a fundraising of between $15 billion and $20 billion through a private placement, with Cantor Fitzgerald serving as advisor.

Valuation compared with major banks

At a $500 billion valuation, Tether would surpass Bank of America, which is valued at around $352 billion, and would rank just behind JPMorgan Chase, with capitalization of about $794 billion.

However, some investors view the valuation as overly ambitious. Even though USDT remains the largest stablecoin by market capitalization—about $184 billion—crossing the $500 billion threshold would require more than dominance in the sector. It would also depend on confidence in Tether’s ability to sustain growth, diversify its activities, and provide sufficient transparency regarding the quality of its reserves.

Background on the fundraising and Tether’s messaging

This is not the first time Tether has discussed raising funds. In September 2024, Bloomberg reported that the company was exploring a fundraising of between $15 billion and $20 billion through a private placement representing about 3% of capital.

CEO Paolo Ardoino later confirmed the plan on X, describing expansion into areas including artificial intelligence, energy, commodities, and media.

In February, Ardoino partially revised his earlier communication. In an interview with Cointelegraph, he described the $20 billion figure as “mere hypotheses,” while still maintaining the $500 billion valuation and comparing it to OpenAI’s profits. The current fundraising appears to be accompanied by increased urgency and a changed tone.

Audit and transparency efforts

Alongside its fundraising push, Tether is attempting to address areas that have drawn criticism. The Financial Times reports that KPMG has been mandated to conduct the first full audit of Tether’s financial statements, the first such audit in the company’s history.

PwC is also supporting Tether in setting up internal systems. Previously, Tether had relied on attestations signed by BDO Italy, rather than a comprehensive audit covering assets, liabilities, and internal controls.

This shift is significant in a market where stablecoins account for 75% of total crypto trading volume, and where USDT represents about 68% of exchange volumes. Building trust with large institutional investors, the article notes, depends on greater transparency.

Potential implications for the stablecoin sector

Tether’s fundraising strategy combines a tight deadline, an exceptionally high valuation, and an uncertain market response. If the operation fails, it could be interpreted as a signal of reduced trust in the stablecoin issuer. If it succeeds, Tether would move closer to the role of a systemic financial institution. The next two weeks, the article concludes, will be indicative for the sector’s outlook.