Tether is reportedly pushing investors to commit to a fundraising round at a $500 billion valuation within the next two weeks, warning it may delay the raise if demand doesn’t meet expectations.
The El Salvador-based company has been seeking new capital since late last year but has encountered hesitation from investors concerned about the lofty valuation, according to a report citing unnamed sources. If sufficient commitments aren’t secured, the fundraising could be postponed.
A $500 billion valuation would rank Tether among the world’s largest financial firms, surpassing all US banks except JPMorgan Chase. By comparison, JPMorgan’s market capitalization stands at roughly $794.55 billion, while Bank of America is valued at about $352.86 billion.
Tether’s flagship stablecoin, USDt (USDT), currently holds a market capitalization of around $184 billion. The company also offers other products such as Tether Gold (XAUt) and Tether EURt (EURt), which is pegged to the euro.
Tether explores fundraising plans
Tether has been weighing a major fundraising effort for some time. In September last year, Bloomberg reported the company was considering raising up to $20 billion, potentially valuing it at around $500 billion. The proposed deal involved selling roughly a 3% stake via private placement, with Cantor Fitzgerald acting as lead adviser.
Following that report, CEO Paolo Ardoino said the firm was exploring capital from a select group of investors to significantly scale its operations across multiple areas, including stablecoins, distribution, AI, commodity trading, energy, communications and media.
However, Ardoino later pushed back on the scale of the raise. In comments made in February, he said the $20 billion figure reflected hypothetical scenarios rather than an active fundraising plan. Even so, he defended the ambitious $500 billion valuation, pointing to Tether’s profitability and drawing comparisons with leading AI firms like OpenAI.
Tether moves toward first full audit of USDt
Separately, Tether is reportedly taking steps toward greater transparency by engaging KPMG to conduct its first full audit of USDt’s financial statements, with PwC helping prepare internal systems, according to the Financial Times.
The company has historically relied on reserve attestations from BDO Italia rather than a comprehensive audit. A full audit would provide a deeper review, covering not just reserves but also liabilities, internal controls and the broader structure of Tether’s balance sheet.
