Stablecoin giant seeks $20B in funding while diversifying beyond yield income
Tether, the world’s largest stablecoin issuer, is preparing for a massive fundraise that could value the company at up to $500 billion, according to people familiar with the matter. Reports indicate that SoftBank Group and ARK Investment Management are considering a combined $20 billion stake in the company, which is looking to sell roughly 3% of its equity.
Investor interest signals confidence in stablecoins
Tether CEO Paolo Ardoino confirmed this week that the firm is exploring a raise from “a select group of high-profile key investors.” While names were not officially disclosed, sources point to SoftBank and ARK as frontrunners.
The timing aligns with the U.S. government’s GENIUS Act, which designates stablecoins as a national priority for strengthening the dollar’s global role.
Tether’s record profitability from Treasury yields
Tether’s business model centers on issuing its dollar-pegged USDT stablecoin, backed by fiat deposits invested in yield-generating assets. The company has reported extraordinary results, posting $4.9 billion in net income in Q2 2025 — a 277% jump year-over-year.
Much of this growth has come from investing in short-term U.S. Treasury bills, where yields surged after the Federal Reserve’s tightening cycle. With the federal funds rate above 5%, three-month T-bill yields provided Tether with a windfall, creating one of the most profitable models in the digital asset sector.
However, yields have begun easing from their peak levels of 2023–2024, raising questions about the sustainability of Tether’s reliance on interest income.
Expansion into new sectors
To reduce dependency on Treasuries, Ardoino has signaled that Tether is preparing to expand into commodities, energy, and media. The company has already surpassed 100,000 BTC in reserves, added secured lending as a revenue line, and made venture capital investments, including a 2024 commitment to Arcanum Capital.
Industry observers argue that diversification could position Tether as more than just a financial player. “The move into infrastructure and energy suggests Tether wants to become an industrial powerhouse, not just a yield-driven issuer,”.
With a potential $500 billion valuation, Tether would rank among the most valuable private companies in the world, rivaling firms like OpenAI. The outcome of the raise could reshape not only the stablecoin market but also the broader financial landscape, as Tether shifts from a yield-driven entity into a multi-sector enterprise.
Disclaimer
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