The largest stablecoin issuer in the world, Tether, is raising up to $20 billion at a valuation of $500 billion ahead of competitor Circle. The issuer of the stablecoin announced to sell a 3% stake in equity with Cantor Fitzgerald acting as an advisor to the transaction.
Tether $500B Valuation Surpasses Circle
A successful sale would put Tether among the globe’s most valuable private companies, such as SpaceX and OpenAI. Circle, on the other hand, is valued at around $30 billion.
CEO Paolo Ardoino explained the raise will drive the expansion of stablecoins, artificial intelligence, energy, and media. The raise was described by him as a “multidimensional expansion” of the Tether approach.
Profit and Market Leadership
Tether earned $4.9 billion profit in Q2 2025 with more than 90% margins. The bulk of the revenue is from the investment of reserves in U.S. Treasury and other safe assets.
USDT’s outstanding value has reached $173 billion, which gives Tether a 56% market share in the $300 billion stablecoin universe. Competing USDC has 25% with $74 billion outstanding.
Recent GENIUS Act further increased the use of stablecoins, giving market dominance to Tether.
Growth Beyond Stablecoins
Part of the raise will be used for diversification. Tether debuted U.S.-regulated stablecoin USAT last week and hired former White House crypto official Bo Hines to head its American operation.
The firm is also putting money in AI, commodity trading, and energy investments, which suggests ambitions beyond the digital currency.
Industry Reactions
Industry players are viewing the raise as historic. Ram Ahluwalia at Lumida Wealth described the firm as “one of the best businesses in the world.”
BitMEX co-founder Arthur Hayes foretold Circle’s failure with a an IPO as a possibility.
The company’s valuation of $500 billion is ushering in a new age of crypto finance. With massive profits and expansion plans, the company is solidifying its leadership and moving into much more vast markets than stablecoins.
