SoftBank and Ark Invest in Talks to Back Tether’s $20B Fundraising Round

Tether, the issuer of the world’s largest stablecoin USDT, is reportedly in early-stage discussions with major investment firms SoftBank and Ark Invest for a new funding round. According to Bloomberg, the company is seeking to raise up to $20 billion, a move that would value Tether at approximately $500 billion. If successful, this would place Tether among the most valuable private companies in the world and highlight the surging investor appetite for stablecoin projects.

The fundraising underscores the rapid rise of the stablecoin market, which has grown 40% year-to-date to $287 billion, based on data from RWA.xyz. Analysts at Citi project the market could expand to $4 trillion under a bull scenario. Stablecoins, digital tokens pegged to fiat currencies like the U.S. dollar, are increasingly viewed as transformative for cross-border payments by offering faster, cheaper transactions powered by blockchain.

USDT remains the dominant stablecoin with a $173 billion market capitalization. Tether’s reserves are largely backed by U.S. Treasuries, enabling the company to reap significant profits from bond yields. In Q2 2025, Tether reported profits of $4.9 billion. This performance has fueled further investor confidence in the sector.

Competition is also heating up. Circle, the issuer of USDC, went public in June 2025 and saw its stock price surge from $30 to $300, reflecting strong demand for exposure to stablecoin assets. Meanwhile, Tether is preparing to expand into the U.S. market with a new token called USAT, designed to comply with the recently passed GENIUS Act, the nation’s first federal stablecoin law. The company has also hired Bo Hines, former White House Crypto Council director under President Donald Trump, to lead its U.S. division.

With institutional interest from firms like SoftBank and Ark Invest, Tether’s latest fundraising push could accelerate mainstream adoption of stablecoins and reshape the global payments landscape.