Editor's Note: Against the backdrop of a cooling crypto market and pressured valuation narratives, Tether finds itself in a delicate position. On one hand, the continued expansion of USDT has made it an undeniable 'new financial player' in the U.S. Treasury and gold markets. On the other hand, a lofty $500 billion valuation expectations, an incomplete comprehensive audit, and long-standing regulatory and compliance controversies continue to make potential investors cautious.
Tether's next move may reflect not only its own choices but also the practical boundaries the entire stablecoin industry is facing.
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As investors expressed skepticism about its $500 billion valuation target, the CEO of Tether, the world's largest stablecoin issuer, proactively downplayed expectations and attention regarding its financing scale.
This crypto group, registered in El Salvador, initiated financing negotiations last year, planning to raise $15 to $20 billion. Had the deal been completed, it would have placed Tether among the world's most valuable private companies.
But according to informed sources, after encountering investor hesitation, Tether's advisors have begun exploring the possibility of raising only about $5 billion.
Tether CEO Paolo Ardoino downplayed the potential financing scale, calling the previously stated $15 to $20 billion target "a misunderstanding."
"That number was not our target; it was just the maximum we were willing to sell," he said in an interview. "We would be equally happy not selling a single cent."
Ardoino stated that Tether is highly profitable and has received "significant interest" at the $500 billion valuation level. He added that the company has not yet decided how much equity to sell, partly because insiders are reluctant to reduce their holdings.
The company's dollar-pegged stablecoin, USDT, currently has a scale of approximately $1.85 trillion and is regarded as the "reserve currency" of the digital asset market. Control of Tether is concentrated in the hands of a small group of long-serving executives.
The market has been closely watching Tether's progress in attracting well-known investors, seeing it as a key indicator of investor interest in the crypto industry. It is widely believed that this move is more about consolidating Tether's credibility and network, as the company, generating billions of dollars in profit annually, does not urgently need new capital.
Following Trump's election as president, the market was once boosted by expectations of a more friendly U.S. regulatory environment for digital assets. However, over the past six months, as traders retreated from high-risk speculative assets, the crypto market has seen a significant pullback.
Some investors have privately expressed concerns about the $500 billion valuation, which would place Tether among the top private companies globally, alongside AI firms like OpenAI and Anthropic, as well as Musk's SpaceX and TikTok's parent company ByteDance.
Ardoino argued that Tether—which disclosed profits of approximately $10 billion last year, primarily from returns on the asset reserves backing USDT's value—deserves a valuation comparable to these still-unprofitable AI model companies.
"These AI companies make about the same amount of money as we do, just with a huge minus sign in front," he said. "If you're willing to believe an AI company with a massive minus sign in front is worth $800 billion, that's your choice."
Both Tether and its financing advisor, Cantor Fitzgerald, declined to comment on the size of this financing. The investment bank, run by the children of U.S. Commerce Secretary Howard Lutnick, also holds a stake in Tether.
Informed sources cautioned that the negotiations are ongoing and the financing terms could still change; if the overall crypto market strengthens again, investor sentiment could also reverse.
Ardoino stated that the new U.S. stablecoin legislation signed into law by Trump, coupled with the listing of U.S. rival Circle last year, has further increased market attention and momentum for Tether. Tether recently also launched a new token in the U.S. that complies with this regulatory framework.
But informed sources said some potential investors remain cautious about the regulatory risks surrounding Tether. Since its founding in 2014, this crypto group has long faced scrutiny, with controversies primarily focusing on whether its tokens are used for illegal activities and the transparency and quality of its asset reserves.
In recent years, Tether has begun publishing quarterly reserve attestations by the accounting firm BDO Italia, but it has never undergone a full independent audit.
Ardoino stated that the company has demonstrated the depth of its technical tools for collaboration with various law enforcement agencies to potential investors, to prove its capabilities in compliance and law enforcement cooperation.
S&P Global Ratings downgraded Tether's reserve rating to the lowest tier in its system late last year, citing its increasing exposure to high-risk assets like Bitcoin and gold. In response, Ardoino said at the time: "We wear your disdain as a badge of honor."
Since 2020, the growth of USDT has significantly accelerated, making Tether one of the world's largest buyers of U.S. Treasuries and, in recent months, a major player in the gold market.
Asset allocation on such a massive scale makes Tether one of the most critical connecting nodes between the global financial system and the highly volatile world of cryptocurrency.
Compared to the previous year, Tether's profits for 2025 fell by about a quarter. Ardoino attributed this change to the decline in Bitcoin's price. He added that the company gained approximately $8 to $10 billion in profits from its gold holdings, benefiting from rising precious metal prices.
