Tether Eyes $500B Valuation as SoftBank and ARK Join Mega Fundraise

Tether, the world’s largest stablecoin issuer, is reportedly attracting heavyweight investors like SoftBank and ARK Investment Management in a potential funding round that could value the company at half a trillion dollars. The move signals Tether’s growing ambitions beyond yield income and into new industries such as energy, commodities, and media.

• The deal could value the stablecoin giant at up to $500 billion.
• CEO Paolo Ardoino confirmed an ongoing fundraising from “select high-profile investors.”
• Tether plans to diversify into commodities, energy, and media.
• Despite record profits from Treasury yields, Tether seeks to reduce its reliance on interest income.
• USDT remains the dominant stablecoin, with a $173.6 billion market cap.

At least two global investment titans — SoftBank Group and ARK Investment Management — are reportedly in talks to invest in Tether, according to Bloomberg. The stablecoin issuer is said to be selling around 3% of its equity, potentially raising up to $20 billion and valuing the company as high as $500 billion. If finalized, the valuation would place Tether among the world’s most valuable private enterprises, on par with OpenAI.

Tether CEO Paolo Ardoino confirmed that the company is exploring a “selective fundraise” involving key institutional investors but declined to disclose names or specific amounts. He also revealed that Tether plans to expand beyond its core stablecoin operations into new sectors such as commodities trading, energy production, and media infrastructure — part of a broader strategy to evolve from a financial product provider into a diversified global powerhouse.

The heightened investor interest underscores Tether’s dominance in the digital asset economy. Its flagship stablecoin, USDt (USDT), remains the most widely used globally, with a circulating supply exceeding $173 billion. The stablecoin’s widespread adoption has grown alongside regulatory developments like the United States’ newly approved GENIUS Act, which cements stablecoins as key instruments in reinforcing the dollar’s international influence.

Tether’s rapid ascent has been fueled by its lucrative business model, which centers on issuing stablecoins backed by yield-bearing reserves — primarily short-term U.S. Treasury bills. As interest rates surged following the Federal Reserve’s tightening cycle, the yields on three-month T-bills climbed sharply, delivering a windfall for firms like Tether. The company reported a record $4.9 billion in net income in Q2 2025, a 277% jump from the previous year, driven by high Treasury returns and secured lending.

However, with yields beginning to ease from their 2023–2024 highs, Tether appears to be anticipating a shift. By venturing into energy, Bitcoin mining, and real-world assets, the firm aims to sustain profitability even as interest income declines. Ardoino’s recent remarks reflect a clear intention: to future-proof Tether’s dominance through diversification and innovation.

Final Thought

Tether’s pursuit of a $500 billion valuation — backed by institutional giants like SoftBank and ARK — marks a pivotal moment for both the company and the broader crypto-financial ecosystem. As it expands into new industries and reduces dependency on yield income, Tether is positioning itself not just as a stablecoin issuer but as a cornerstone of the next generation of digital finance and infrastructure.