Tether’s $500 Billion Fundraising Retreat Stokes Speculation—Is an IPO Ever Coming?
Tether, issuer of the $185 billion USDT stablecoin, has dramatically scaled again its non-public fundraising ambitions.
It raises doubts a couple of potential IPO as soon as fueled by hypothesis from crypto insiders like BitMEX co-founder Arthur Hayes.
Investor Pushback Forces Tether to Reassess Funding Ambitions
Tether was initially exploring a $15–20 billion increase at a $500 billion valuation. The determine would have positioned the stablecoin issuer among the many world’s most precious non-public corporations.
However, based on the Financial Times, Tether is now contemplating as little as $5 billion, or doubtlessly no increase in any respect.
The newest pullback follows a yr of heightened market chatter. In September 2025, Hayes reignited Tether IPO hypothesis, suggesting a public itemizing for the stablecoin issuer might overshadow Circle’s successful USDC debut.
At the time, Tether’s valuation was pegged at over $500 billion. This positioned it alongside tech and finance giants equivalent to SpaceX, OpenAI, and ByteDance.
Hayes framed the potential listing as a strategic move, with Tether’s USDT circulation of $185 billion and its revenue-generating construction giving it a aggressive edge over Circle.
Yet investor sentiment has tempered the hype. Backers reportedly balked on the lofty $500 billion valuation, citing:
- Regulatory scrutiny
- Reserve transparency considerations, and
- Past allegations of illicit use.
Tether Stays Profitable Amid Market Headwinds, Keeping IPO Optional
A latest S&P Global Ratings downgrade highlighted Tether’s exposure to riskier assets, such as Bitcoin and gold, additional heightening warning.
“S&P stated there had been an enhance in high-risk property in Tether’s reserves over the previous yr, together with bitcoin, gold, secured loans, company bonds, and different investments, all with restricted disclosures and topic to credit score, market, interest-rate, and foreign-exchange dangers. Tether continues to supply restricted data on the creditworthiness of its custodians, counterparties, or checking account suppliers,” Reuters reported, citing S&P.
The broader crypto market’s decline over the previous six months additional dampened enthusiasm for sky-high valuations, even for the sector’s most worthwhile participant.
Ardoino, nonetheless, stays assured in Tether’s fundamentals. He described the $15–20 billion determine as a false impression. According to Ardoino, the corporate could be “very completely satisfied” elevating zero capital.
“That quantity will not be our aim. It’s our most, we have been able to promote…If we have been promoting zero, we’d be very completely satisfied as effectively,” read an excerpt within the report, citing Ardoino.
Tether reported $10 billion in profits for 2025, down about 23% from the prior yr on account of Bitcoin value declines however offset by robust returns on gold holdings.
With profitability firmly intact, Tether has little operational want for added funds. This suggests the fundraising drive is as a lot about credibility and strategic partnerships as it’s about money.
Tether IPO: Just a Pipe Dream?
The retreat additionally reshapes expectations for the Tether IPO. While a public itemizing is now not imminent, regulatory tailwinds and strategic initiatives maintain the choice alive.
US stablecoin laws below President Trump, together with Tether’s new US-compliant USAT token, might present a pathway for legitimacy within the home market.
Therefore, groundwork could possibly be laid for a possible 2026 IPO if market situations enhance, although the valuation might have to be recalibrated.
Still, Tether’s cautious pivot carries a broader sign for the crypto ecosystem. As the market’s de facto reserve foreign money with large Treasury and gold holdings, the corporate’s retreat highlights a rising emphasis on profitability and transparency over hype.
For different high-valuation crypto corporations eyeing public markets, Tether’s expertise might function a blueprint: sustainable development and powerful fundamentals are more and more important to investor confidence, even for marquee names within the trade.
It can also be price noting that Tether CEO Paolo Arodino as soon as articulated that the agency doesn’t have to go public. However, he didn’t rule it out both.
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