Tether trims fundraise target to $5b as caution rises

Tether CEO Paolo Ardoino has indicated that the company is considering raising significantly less than its previously discussed funding target amid investor concerns, according to the Financial Times.

The company’s advisers have reportedly floated a potential raise of around US$5 billion, down from earlier talks of a US$15 billion to US$20 billion fundraise last year, which could have valued Tether at up to US$500 billion.

Ardoino clarified that the US$500 billion figure was not a goal but the maximum valuation Tether was prepared to sell at.

Tether, based in El Salvador, is the issuer of the USDT stablecoin, which has approximately US$187 billion in circulation.

Reuters could not verify the Financial Times report.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

Tether’s $10 billion profit makes its fundraising plans puzzling

A possible fundraise stands out because Tether already generates huge profits.
Tether made over $10 billion in net profit in 2025, driven mainly by interest from U.S. Treasury holdings with more than $141 billion in exposure 1.
That level of earnings rivals large multinational banks, though Tether runs with far fewer staff and overhead 2.
It also reports $6.3 billion in excess reserves above what is needed to back USDT stablecoin one-to-one 1.
Any new capital may instead support a separate investment arm focused on AI and renewable energy, built on a portfolio valued at over $20 billion 1.

A $500 billion valuation faces scrutiny given Tether’s controversial past

A valuation as high as $500 billion could recast Tether from a disputed crypto tool into a global finance player.
Regulators have penalized Tether before, including a $41 million Commodity Futures Trading Commission (CFTC) penalty in 2021 tied to misleading statements about reserves and an $18.5 million settlement with New York’s Attorney General related to its and Bitfinex’s conduct 3, 4.
That record can deter traditional investors, especially with no traditional audit to rely on 5.
If it succeeds, Tether could become a systemically important financial entity that offers dollar access outside the traditional U.S. banking system, which can draw heavy regulatory attention 6.