Tether plans to raise $15–20 billion via issuing new shares, potentially valuing it near $500 billion to expand into AI, commodities, energy, media.
Internal challenges include limited reserve transparency, volatile asset allocation, and weak governance—raising doubts about liquidity and regulatory resilience.
Outside threats: rivals (Circle, PayPal, Hyperliquid, Robinhood), regulatory scrutiny, and possible zero-sum stablecoin market growth threaten Tether’s dominance.
Tether aims for a $500 billion valuation via raising $15–20 billion, but faces internal risks (reserve opacity, governance, complex diversification) and external pressures from competitors and tighter regulation.
Global stablecoin issuer Tether is considering raising $15–20 billion via private placements, representing about 3% of its shares. If successful, the move could value the company at nearly $500 billion—comparable to OpenAI. The funds would be used to massively scale its presence in existing and new business areas, including stablecoins, distribution ubiquity, AI, commodities, energy, communications, and media.
This financing would be done by issuing new shares, not via existing shareholders selling. However, the deal is still in early negotiation, and key terms may change. Tether CEO Paolo Ardoino confirmed the intention and said the expansion would “exponentially amplify” its strategic footprint.
Though its USDT stablecoin market cap recently exceeded $172 billion—well ahead of the second-place rival, Circle (with USDC ~ $74 billion)—Tether’s dominance does not guarantee immunity.
Internal Challenges
Reserve transparency and structure: Tether claims full backing for USDT, but lacks continuous third-party audit and only publishes quarterly reports. The public still questions its reserve composition and liquidity.
Risky asset allocation: Reserves include not only USD cash and Treasury bonds, but also Bitcoin, gold, and other volatile assets. Diversification may boost yield but raises valuation and liquidity risks under stress.
Governance & compliance gaps: To comply with new regulatory regimes like the GENIUS Act, Tether needs stronger internal controls, audit mechanisms, and risk governance. Its current structure lacks full transparency and standardization.
Complex expansion: Tether’s strategy now spans AI, energy, commodities, and more. While strategically ambitious, this diversification increases operational complexity and could divert attention from its core stablecoin business.
External Threats
Intensifying competition: While Tether leads, rivals like Circle, PayPal (with PYUSD), Hyperliquid (USDH), and Robinhood are aggressively expanding via better compliance, innovation, or integrated services.
Regulatory pressure: As regulators worldwide tighten rules around stablecoins, Tether will face scrutiny over reserve backing, risk controls, and governance.
Market structure constraints: JPMorgan research suggests stablecoins’ growth may be zero-sum, meaning new issuance mostly shifts share rather than expands total market. Tether must defend share amid a stagnant aggregate market.
In summary, Tether’s plan to raise capital and expand could place it among the most valuable private firms. But its supremacy is challenged by internal transparency and governance weaknesses—and by external competitors and regulatory headwinds. Its ability to sustain leadership will hinge on its internal discipline and regulatory strategy.
〈Stablecoin powerhouse Tether seeks a $500B valuation: what internal and external challenges lie ahead?〉這篇文章最早發佈於《CoinRank》。
