Tether has quietly pulled back from plans to raise as much as $20 billion in fresh capital after facing investor resistance to a proposed valuation that would rank the stablecoin issuer among the world’s most valuable private companies, per an FT report on Wednesday.
The company, which issues the USDT stablecoin with over $185 billion in circulation, had explored a funding round last year that could have valued Tether at around $500 billion, according to people familiar with the talks.
Advisers have since floated raising closer to $5 billion, a sharp reduction from earlier discussions, as investors questioned both the size of the deal and the valuation.
Chief executive Paolo Ardoino said the larger figures had been misunderstood, describing the $15 billion to $20 billion range as a ceiling rather than a target.
“That number is not our goal,” Ardoino said in an interview to FT. “If we were selling zero, we would be very happy as well.”
Tether’s fundraising push has drawn attention because the company is already highly profitable and has limited operational need for external capital. Ardoino said the firm generated roughly $10 billion in profit last year, largely from interest earned on the assets backing USDT, and added that insiders were reluctant to sell shares.
Still, prospective investors have raised concerns about a valuation that would place Tether alongside firms such as SpaceX, ByteDance and leading artificial intelligence companies. Some have also pointed to regulatory risks and long-standing questions around reserve transparency as sticking points.
Tether has faced scrutiny since its founding over the quality of its reserves and the use of USDT in illicit activity. While the company now publishes quarterly attestations from BDO Italia, it has not released a full audit. Ratings agency S&P Global downgraded Tether’s reserve assessment last year, citing increased exposure to assets such as bitcoin and gold.
But Ardoino has defended the company’s approach, arguing that Tether’s profitability compares favorably with loss-making AI firms commanding similar valuations.
“If you believe some AI company is worth $800 billion with a huge minus sign in front, be my guest,” he said.
Tether’s growing footprint in U.S. Treasuries and gold has made it one of the most significant bridges between traditional finance and digital assets — a role that continues to attract attention even as investors debate how much the company is worth.
