Tether is seeking up to a $20 billion investment and eyeing a $500B valuation. Here’s why the market is skeptical, and what it says about crypto’s endless confidence game.
A Half-Trillion Flex
Tether, the company behind the world’s largest stablecoin , is reportedly in talks to raise fresh capital at a potentially jaw-dropping $500 billion valuation, according to Bloomberg. Now, that $500 billion valuation comes with a caveat, but the company is seeking between $15 billion and $20 billion for an approximate 3% stake in the business.
[ ZOOMER ]
— zoomer (@zoomerfied) September 23, 2025
TETHER RAISING FUNDS AT A $500B VALUATION, LOOKING FOR $20B IN FUNDING, MAKING IT THE MOST VALUABLE PRIVATE COMPANY IN THE WORLD ALONGSIDE OPENAI: BBG
That $500 billion value would put it in the ballpark of household names like Mastercard or Netflix, which sell services the average person can describe at dinner. Tether, by contrast, prints a digital IOU pegged to the dollar and spends a lot of time deflecting questions about its reserves. In 2021, the company paid $41 million to settle allegations it misrepresented that its tokens were fully backed by fiat currencies. And as recently as 2024, analysts noted it remained “the company with the most questions around reserve assets and how these assets are managed.”
The company is seeking $20 billion as it angles to become the undisputed heavyweight of stablecoins. With around $100 billion already in circulation, it is the plumbing that props up much of crypto’s liquidity.
Stablecoin, Shaky Story
Here’s the problem. Tether’s business model has raised questions. It claims every token is backed by cash or equivalents, but its disclosures have often raised more questions than they answered. The firm has faced regulatory scrutiny and accusations of murky accounting. Yet in true crypto fashion, those red flags have only seemed to boost its mystique. If the market hasn’t punished it yet, maybe it never will.
Tether, issuer of the world’s largest stablecoin, is in talks with investors to raise as much as $20 billion, a deal that could propel the crypto firm into the highest ranks of the world’s most valuable private companies https://t.co/34rx0HGO3T
— Bloomberg (@business) September 23, 2025
With sources stressing the firm is actively exploring ways to lock in fresh capital at that dizzying level, Tether is certainly pushing. It’s not the first time crypto valuations have taken leave of reality. But even in a sector where “number go up” is practically a business model, half a trillion dollars is an audacious ask.
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Big Tech Envy
For context, Apple’s market cap hovers around $3.7 trillion. Tether’s proposed valuation would equal about one-seventh of that, despite producing none of the physical products, patents, or even user-facing services that Big Tech giants churn out.
Nvidia $NVDA closed trading today worth $4.47 Trillion ... Nvidia's market cap increased by $169 Billion today
— Evan (@StockMKTNewz) September 22, 2025
Apple $AAPL closed trading today worth $3.8 Trillion ... Apple's market cap increased by $157 Billion today pic.twitter.com/wIi5nPyYzC
Stablecoins do generate serious cash, though. Tether earns on the interest from the reserves backing its tokens. In 2023, the firm reportedly made billions in profit. Investors know this is less about the coins and more about the treasury-bill carry trade that underpins them. If rates stay elevated, Tether’s piggy bank keeps swelling.
What It Says About the Market
The attempt to raise $20 billion and reach a $500 billion valuation is less about fundamentals and more about confidence. Crypto companies often inflate expectations to lure capital, and the strategy has a way of working when markets are frothy. A valuation this high sets benchmarks across the crypto ecosystem. Other firms will use it to justify their own sky-high asks, creating a chain reaction of inflated expectations.
🚨🇺🇸 TETHER EYES $500B VALUATION IN MASSIVE PRIVATE FUNDING ROUND
— Mario Nawfal (@MarioNawfal) September 24, 2025
Tether wants to raise $20 billion by selling just 3% of itself, aiming for a $500 billion valuation.
That would put it in the same league as SpaceX and ByteDance, except instead of rockets or TikTok, it prints… https://t.co/tQhZs6VpGK pic.twitter.com/WTJSfOfUYL
Critics argue that Tether’s dominance is precisely why it shouldn’t be treated like a high-growth tech darling. Its token is supposed to be reliable, a dollar proxy. Slapping a half-trillion valuation on it only underscores the questions it faces and how crypto as a whole is valued.
The Bottom Line
If Tether actually secures funding at that level, it could mark a new phase in crypto’s journey from fringe to mainstream. But it will also confirm what skeptics have long said: valuations in this sector often belong more to fantasy than finance. Stablecoins might be the glue holding digital markets together, but whether that glue is worth half a trillion dollars is a bet that will test the limits of investor imagination.
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