Tether Scales Back Fundraising, IPO Prospects Reassessed

Tether, issuer of the $185 billion USDT stablecoin, has dramatically scaled back a planned private raise that initially targeted $15–20 billion at a $500 billion valuation and is now considering as little as $5 billion or no raise at all amid investor pushback.

Backers reportedly balked at the lofty valuation, citing regulatory scrutiny, concerns over reserve transparency and past allegations of illicit use. A recent S&P Global Ratings downgrade also highlighted an increase in higher‑risk assets in Tether’s reserves, including bitcoin, gold, secured loans and corporate bonds, along with limited disclosures.

Despite these concerns, Tether remains profitable: it reported $10 billion in profits for 2025, down about 23% from the prior year as bitcoin declines were offset by strong returns on gold. CTO Paolo Ardoino described the $15–20 billion figure as a misconception and said the firm would be "very happy" raising zero capital.

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