Tether Holdings SA, the stablecoin issuer of USDT, the world’s largest by market cap, is in the news for initiating a whopping $15-$20 billion private placement capital raise. This would mark one of the largest equity raises in crypto history, aimed at fueling Tether’s expansion beyond stablecoins into areas like AI, commodities, energy, communications, and media.
Let us explain.
CEO Paolo Ardoino publicly acknowledged the plans on X (formerly Twitter), stating Tether is “evaluating a raise from a selected group of high-profile key investors to maximize the scale of the Company’s strategy across all existing and new business lines.” Discussions began in earnest in mid-September 2025. Preliminary talks involve SoftBank (Japan’s tech investment giant) and ARK Invest (Cathie Wood’s firm, known for leading edge technology bets).
Equally impressive to us is the openly discussed valuation of $500 billion, potentially rivaling OpenAI (currently ~$500B) and surpassing firms like SpaceX or ByteDance as one of the world’s most valuable private companies. Cantor Fitzgerald is the lead advisor.
Use of Funds and Business context.
U.S. market entry by launching USAT, a compliant dollar token under the new GENIUS Act (the U.S.’s first federal stablecoin law), enabling banks to integrate stablecoins. Tether’s proposed capital raise comes on the heels of the successful IPO for the second largest stablecoin issuer, Circle (USDC).
Investments in AI (e.g., acquiring Northern Data Group in 2023), Bitcoin mining, and emerging markets where USDT facilitates remittances and trading.
The Plasma Project: A Faster Highway System
Tether’s CEO Paolo Ardoino has invested in Plasma, a high-performance Layer 1 (L1) blockchain project deeply intertwined with the company’s operations. Launched in 2025, it is designed as the “home for stablecoins,” with a primary focus on enabling instant, low-cost (often zero-fee) USDT transfers on a global scale. It is heavily backed by Tether’s ecosystem, including its sister exchange Bitfinex, making it Tether’s preferred infrastructure for stablecoin payments. Plasma positions itself as a “money chain” for the $1 trillion+ stablecoin market, optimizing for remittances, DeFi liquidity, cross-border payments, and everyday transactions in emerging markets like Türkey, Argentina, and Nigeria, where USDT already functions as a dollar proxy. Plasma has raised $100 million from a number of noteworthy investors, including Peter Thiel.
Regulation and Transparency
The fundraising efforts and Plasma’s emergence present certain risks. The GENIUS Act, a newly enacted U.S. stablecoin regulation, has yet to be tested in court. Tether previously reached settlements with both the U.S. commodities regulator and the New York attorney general following allegations of inadequate accounting for its customers’ reserves. High-profile scrutiny regarding the 1:1 fiat backing of USDT resulted in a $41 million penalty in 2021 and drew attention to issues surrounding reserve transparency. Additionally, The Wall Street Journal reported last year that federal prosecutors were investigating Tether for possible breaches of anti-money laundering regulations. It is expected that these subjects are being addressed during discussions with investors. Despite these challenges, Tether’s strategic diversification into fintech and Plasma’s utility-focused approach may indicate the onset of a promising phase for the industry.
