Tether Scales Back $20B Funding Push After Investor Resistance: Report
Tether, the world’s largest stablecoin issuer, has reduced its fundraising ambitions from a proposed $15–$20 billion, due to investor resistance to its valuation, and is now considering raising as little as $5 billion. CEO Paolo Ardoino clarified that the original figure was a maximum, not a set goal, and emphasized that Tether remains profitable and does not need new capital. The fundraising was intended to strengthen Tether’s credibility and investor relations amid persistent scrutiny over valuation, transparency, and regulatory uncertainties. Insiders’ reluctance to sell shares has also limited potential equity offerings. Tether issues USDT, with about $185 billion in circulation, and reported around $10 billion in profit last year, mostly from interest on reserves like U.S. Treasuries. Industry perspectives suggest the scaled-back raise signals institutional focus on governance and regulatory clarity, rather than a lack of demand for Tether’s product or financial weakness. Observers note the fundraising’s real goal was legitimacy, not capital, and that stepping back allows Tether greater strategic flexibility as it considers expansion into areas such as AI and energy in developing markets.
