Tether’s talks to raise $20 billion from investors — valuing the stablecoin issuer at $500 billion — redefines the scale of the industry.
That’s according to Daniel Worsley, co-founder of crypto software company OneBalance, who told DL News that a successful raise would “reset expectations” for the entire stablecoin industry.
“A $500 billion valuation not only dwarfs prior benchmarks but also overshadows the GDP of El Salvador — the country where Tether is headquartered,” Worsley said.
The potential deal highlights the prominent role digital dollars now play in global finance, catapulting Tether into the same valuation tier as titans OpenAI and SpaceX, and dwarfing rivals like Circle at $36 billion.
Tether’s USDT token commands more than $172 billion in circulation, far ahead of Circle’s USDC at $74 billion.
Other contenders, like Paxos and Ethena, are attracting investor attention, but none match Tether’s scale.
Tether also plans to launch a new stablecoin for the US market dubbed USAT by the end of the year, to be led by former White House official Bo Hines, CEO Paolo Ardoino said on September 12.
The company has booked substantial profits from investing its reserves in US Treasuries, claiming $4.9 billion in profit in the second quarter alone, with a 99% profit margin, Bloomberg reported. That windfall has left rivals scrambling to catch up as the stablecoin market surges past new milestones.
Since the Federal Reserve cut interest rates in September, those profits are suddenly smaller. And with more rate cuts slated for later this year and early next, Tether’s timing is critical.
“The key question is whether this represents a late-cycle push to secure capital before interest rates fall further, or genuine conviction that demand for stablecoins will accelerate under a more crypto-friendly US policy environment,” Worsley said.
Stablecoins have quickly grown to become crypto’s most established product.
US Treasury Secretary Scott Bessent predicted earlier this year that dollar-linked stablecoins could grow into a $2 trillion market.
That forecast, coupled with recent US legislation and Trump’s pro-crypto stance, has accelerated a rush by issuers and infrastructure firms to capture the demand.
Circle went public last year, and crypto exchange Gemini’s GUSD stablecoin issuer completed a successful IPO this month.
Investors are pouring capital into stablecoin startups, which raised $537 million in 2025 — five times the amount raised in 2024, according to DefiLlama.
“Either way, it underlines how central stablecoins have become to both the crypto economy and the broader debate about the future of digital dollars,” Worsley said.
Crypto market movers
Bitcoin is down 0.8% over the past 24 hours to trade at $111,841.
Ethereum is down 3.4% over the past 24 hours trading at $4,035.
