Softbank and Ark Invest took part in early discussions to take part in Tether’s biggest external capital raise, according to a September 26th Bloomberg News report.
Stablecoin issuers are seeking between $15 billion and $20 billion in exchange for about 3% of shares through private placements. Funding is $500 billion and it values ​​Tether, positioning it among the most valuable private companies in the world.
Support from these technology investment giants could accelerate Tether’s mainstream adoption efforts and strengthen legitimacy across the traditional financial sector.
Investor Profile
Tether has sought greater political acceptance in markets, including the US. The company recently announced USAT, a US-compliant stubcoin that can challenge the domination of the circle USDC in the country.
Additionally, Tether added Beauhains, former crypto advisor to President Donald Trump.
Tokyo-based SoftBank maintains a portfolio of technology investments across data centers, self-driving vehicles and semiconductors.
The company recently committed $30 billion to Openai and continues to pursue growing technology opportunities. Meanwhile, Cathie Wood’s Ark Invest is investing in Stablecoin competitors, including Circle.
Cantor Fitzgerald is Tether’s advisor in the fundraising process. The New York-based investment bank, led by Now-US Commerce secretary Howard Lutnick, provides custody services to Tether’s reserve assets.
Billions of revenue
Tether generates revenue by investing reserves that support USDT Stablecoin with cash equivalent assets, including the US Treasury. This business model allows the company to gain interest in holdings of token dollar pegs while still retaining these.
Tether reported net profit of approximately $4.9 billion in the second quarter, totaling $5.7 billion in the previous year. As of September 25th, USDT supply was dominated by 63% of the Stablecoin market at $174.2 billion.
CEO Paolo Ardoino and co-founder Giancarlo Devasini lead the company. Devasini serves as chairman and holds the greatest ownership.
The funding discussion represents Tether’s most important efforts to attract institutional capital since its inception. If successful, new benchmarks for Crypto Company evaluation can be established and additional traditional financial participants can be attracted to the Stablecoin sector.
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