Tether is reportedly rethinking the scale of a potential fundraising round after pushback from investors over a valuation that could have placed the stablecoin giant among the most valuable private companies in the world.
According to a Feb. 4 report by the Financial Times, Tether has stepped back from earlier discussions around raising as much as $20 billion a move that would have implied a valuation near $500 billion. Instead, advisers are now floating a much more modest raise of around $5 billion, reflecting caution among potential backers.
Ardoino pushes back on valuation headlines
Tether CEO Paolo Ardoino downplayed reports of a massive capital raise, calling the $15–$20 billion figure a misunderstanding.
“That number is not our goal,” Ardoino told the FT. “It’s the maximum we were prepared to sell.”
Still, people familiar with the talks say investor appetite has been softer than expected at that valuation level. As a result, advisers including Cantor Fitzgerald have suggested a smaller raise that would still provide fresh capital without testing the limits of market confidence.
Investor interest exists, but hesitation remains
Discussions around a major equity raise first surfaced in September 2025, when reports suggested Tether was exploring issuing new shares to a select group of high-profile investors. While Ardoino has said the company received strong interest even at the $500 billion valuation, insiders remain divided over how much equity should actually be sold.
Part of the hesitation stems from ongoing regulatory uncertainty. Although the U.S. has made progress on stablecoin legislation and rival Circle has successfully gone public, some investors remain cautious about Tether’s unique risk profile and reserve structure.
Regulatory progress helps but not enough yet
Sources cited by the FT said the fundraising talks are still active and could regain momentum if the broader crypto market recovers from its recent downturn. Tether, for its part, has emphasized improvements in compliance and cooperation with law enforcement agencies as part of its pitch to investors.
However, concerns linger. In 2025, Tether’s profits declined compared to the previous year, a slowdown Ardoino linked to Bitcoin’s weak performance late in the year. Adding to the pressure, S&P Global Ratings downgraded Tether’s reserves to its lowest tier, citing increased exposure to higher-risk assets such as Bitcoin and gold.
Strong position, despite the headwinds
Despite these challenges, Tether remains the undisputed leader in the stablecoin market. Its flagship token, USDT, still commands a market capitalization of more than $185 billion, dwarfing competitors.
The company has also benefited from its exposure to gold. Ardoino said Tether’s precious-metal holdings generated between $8 billion and $10 billion during the recent gold rally, helping offset some of the weakness elsewhere.
The bottom line
Tether’s ambition to justify a $500 billion valuation has not disappeared, but the path toward it may be slower and more measured than initially expected. For now, the focus appears to be on a smaller raise that balances growth ambitions with investor caution at least until market sentiment and regulatory clarity improve further.
