Tether Holdings SA, the company behind the world’s largest stablecoin, is reportedly in discussions with investors to secure funding of up to $US20 billion ($30 billion). This potential deal could significantly elevate the crypto firm’s status, placing it among the world’s most valuable private companies. Tether operates the most used stablecoin, a type of cryptocurrency designed to maintain a stable value relative to a reference asset, such as the U.S. dollar. Stablecoins facilitate cryptocurrency transactions by providing a less volatile alternative to other cryptocurrencies.
The El Salvador-based company is considering offering approximately a 3 per cent stake in exchange for the substantial investment, executed through a private placement, according to sources familiar with the matter. However, one person involved in the discussions indicated that the targeted figures represent the upper end of expectations, and the final amounts may be considerably lower. The talks are still in preliminary stages, and the specifics of the proposed investment are subject to change.
If successful, the deal could potentially value Tether at around $US500 billion. This valuation would position it alongside prominent companies such as OpenAI and Elon Musk’s SpaceX, marking a considerable accomplishment for the crypto business. For context, its direct competitor, Circle Internet Group, a publicly listed stablecoin issuer, had a valuation of approximately $US30 billion as of Tuesday.
The transaction is expected to involve the issuance of new equity, rather than existing investors divesting their holdings. Cantor Fitzgerald is serving as the lead advisor for this potential funding round.
