World’s largest stablecoin co. seeks $500b valuation

Tetherball? More like Tether ball so hard. The crypto company behind the world’s most popular stablecoin is trying to grab new funding in a deal that could make it one of the highest-valued private companies, Bloomberg reported this week.

Tether, which issues the US dollar-pegged stablecoin USDT, is in early talks to secure up to $20 billion in fresh capital to expand its business at a potential valuation of ~$500 billion, per Bloomberg.

For context, ChatGPT-maker OpenAI’s valuation is set to hit $500 billion with an imminent sale of employee shares. SpaceX and and TikTok-owner ByteDance are the only other companies valued at over $300 billion in the private market, according to CB Insights.

Untethering from its past: In 2021, Tether paid $41 million to settle US regulators’ allegations that the company misrepresented the cash-like reserves backing its coins. And in 2023, Tether was the go-to stablecoin for illicit transactions, Bloomberg reported, citing TRM Labs. The company was also reportedly being investigated last year for potential violations of anti-money laundering rules.

Now that the US is crypto-friendlier, El Salvador-based Tether is eyeing a comeback. It plans to launch a Genius Act-regulated stablecoin called USAT, which will be spearheaded by a former Trump administration crypto official.

Big picture: Tether is miles ahead of US-based stablecoin competitors, including Circle, PayPal, and World Liberty Financial—USDT currently accounts for nearly 60% of stablecoins in global circulation, per Bloomberg.