Tether Seeks $20 Billion, Eyes Stablecoin Dominance

Tether is reportedly seeking to raise between $15 billion and $20 billion in a private round. This move could elevate the company’s valuation to $500 billion. Major institutions such as SoftBank and Ark Invest are rumored to back this initiative.

Tether Aims for $500 Billion Valuation

The involvement of Giancarlo Devasini and Paolo Ardoino underscores Tether’s leadership confidence. If successful, this round could solidify Tether’s position as a stablecoin market leader, further intensifying competition with rivals like Circle.

“This deal could make him the fifth-richest person globally if the valuation holds.” — Giancarlo Devasini, Chairman, Tether

Increased capital would strengthen Tether’s market influence. The proposed funding represents a mere 3% of equity, signaling significant institutional confidence. However, the lack of official statements has left room for speculation in the crypto community.

Funding Round Sparks Speculation in Crypto Community

The potential expansion could impact liquidity for USDT and major cryptocurrencies like BTC and ETH. Historical data indicate that similar moves in the sector often lead to volatility and increased trading volumes.

Potential Ripple Effect on DeFi Protocols

Previous large-scale funding rounds by competitors like Circle saw short-lived expansions. Tether’s pursuit far exceeds past efforts in terms of scale and scope, emphasizing its aggressive market dominance ambition.

Experts suggest that such a move might recalibrate the global stablecoin landscape. Historical trends suggest a possible ripple effect on DeFi protocols, especially those reliant on USDT liquidity.