Stablecoin issuer Tether is reportedly in talks with investors to raise between $15 billion and $20 billion in a deal that would value the company at $500 billion.
The transaction would involve new equity, with the investors getting a 3% stake through a private placement, and it is expected to close by the end of the year, Bloomberg reported Tuesday (Sept. 23), citing unnamed sources.
The talks are in their early stages, and the terms of the deal could change, according to the report.
Tether did not immediately reply to PYMNTS’ request for comment.
Bloomberg said in its report that Bo Hines, the company’s strategic adviser for digital assets and U.S. strategy, said Tuesday that the company has no plans to raise money. Other Tether representatives did not comment on the article, per the report.
The report also said a $500 billion valuation would put Tether around the value of Openai and SpaceX and above its closest rival, Circlewhich is valued at about $30 billion.
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It was reported Sept. 16 that Tether aims to match the success it has seen with stablecoins in other countries with the new token it plans to launch in the United States.
Hines told Bloomberg Television that Tether wants to be “the largest player in the U.S. market” and that it aims to serve consumers who are underbanked or underserved and enterprises clientsincluding banks.
Tether CEO Paolo Ardoino told Bloomberg Television on Sept. 16 that the company made $13.7 billion in profit last year and does not plan to go public because it does not need the capital.
The company announced on Sept. 12 that it plans to launch a U.S.-regulated dollar-backed stablecoin called Used and that it appointed Hines, the former executive of the White House Crypto Council, to lead the effort.
Ardoino said in that announcement that Tether has been issuing another stablecoin, USDTfor over a decade and that the token is used by hundreds of millions of people in emerging markets.
When Tether released a partial audit in May, it showed top-line figures of $149.28 billion in total assets against $143.68 billion in liabilities for fiat-backed stablecoin holdings.
