Tether seeks fundraising at a $500 billion valuation; may delay if demand falls short

Tether (USDT), the issuer of the world’s largest stablecoin (a crypto asset pegged to the value of fiat currency), is pushing ahead with a fundraising effort based on an enterprise valuation of about $500 billion, but market observers say it may postpone the timetable if investor demand fails to meet expectations.

According to Cointelegraph on the 4th (Korea time), Tether is proceeding with the fundraising while asking investors to confirm their investment intentions within the next two weeks. It was also reported to be considering a plan to delay the offering if it does not meet its target demand.

Tether has been exploring new fundraising since late last year. Bloomberg previously reported that Tether is considering raising up to $20 billion by selling about 3% of its stake, and is discussing a structure that would value the company at around $500 billion.

However, some investors are said to be cautious, arguing that a $500 billion valuation is excessive.

If Tether secures recognition of a $500 billion valuation and maintains the fundraising, it would have a market capitalization on par with major financial firms. It would be below JPMorgan, the world’s largest investment bank (about $794.5 billion), but above Bank of America (about $352.8 billion).

The market capitalization of USDT, Tether’s flagship stablecoin, stands at about $184 billion as of the day, the largest in the global stablecoin market.