According to the Financial Times of the UK, the issuer of the stablecoin USDT, Tether, has withdrawn its previous fundraising plan, which was interpreted by the outside world as potentially reaching up to $20 billion. Tether CEO Paolo Ardoino stated that the estimated valuation of $500 billion mentioned by others is not an official target of the company, but merely a theoretical maximum price range.
Several insiders revealed that, following a more cautious response from potential investors, Tether’s advisory team (including institutions like Cantor Fitzgerald) has advised the company to reduce the actual fundraising amount to approximately $5 billion. Negotiations are still ongoing, but the final amount of equity to be sold has not been finalized, and some internal sources remain cautious about dilution of ownership.
As early as September 2025, reports indicated that Tether was engaging in early discussions with multiple parties about raising external funds through issuing new shares, rather than selling existing equity. The increased interest in this round of discussions is closely related to the gradual clarification of US stablecoin legislation and the successful listing of its main competitor, Circle. However, some institutions remain cautious about Tether’s potential compliance and regulatory risks.
On the operational front, Tether’s profits in 2025 declined year-over-year. Ardoino attributed this to weak Bitcoin performance in the previous quarter, as well as the company’s increased allocation to high-volatility assets like Bitcoin and gold, which also led S&P Global Ratings to downgrade its reserve rating to the lowest level.
Despite these challenges, USDT continues to hold a central position in the stablecoin market, with a latest market cap exceeding $185 billion. Meanwhile, Tether has been steadily increasing its gold holdings in recent months, generating approximately $8 billion to $10 billion in book gains during periods of rising precious metal prices.
With changes in regulation, market sentiment, and the capital environment, the next move in this stablecoin giant’s fundraising efforts will continue to influence the entire crypto industry.
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