At least two high-profile investment companies have been reported to have returned to Back Stablecoin that has given Tether as it looks like selling almost 3% of its equity-a step that emphasizes the demand of the pent-up investor for one of the profitable companies in the world.
According to BloombergVenture Capital Giants Softbank Group and Ark Investment Management are among the potential investors considering a combined investment of up to $ 20 billion in Tether.
Number Cointelegraph reported this weekIf successful, funding the company can appreciate the company up to $ 500 billion, putting it in the most important private business in the world.
For the comparison, Openai, the developer behind the chatgpt, is said to be in the conversations to raise capital to a similar $ 500 billion values.
Tether CEO Paolo Ardoino confirmed earlier this week that the company was exploring a potential fundraise “from a select group of high -profile investors,” even though he refused to reveal specific names or values.
Ardoino also revealed that Tether could expand on new business lines, including goods, energy and media, as part of its broader approach to its growth.
The investor’s interest reflects Tether’s dominant position in the Stablecoin market, which has changed from a tool for crypto entrepreneurs to a strategic financial property. In the United States, the recently approved Genius Act has further raised Stablecoins as a national priority, aimed at strengthening the role of dollar in global finance.
Tether’s flagship US dollar-back, USDT (USDT), remains the world’s largest stablecoin with a market capitalization of approximately $ 173.6 billion.
Related: The US Treasury opens the second round of comments on the implementation of the Genius Act
Tether’s massive profitability and the need to move beyond the income of interest
Na -back by the wide hold of the US treasury and a growing bitcoin (Btc) Reserve, Tether became one of the profitable Crypto companies, Reporting $ 4.9 billion in net income In the second quarter of 2025 – marking a 277% increase compared to a year before.
Tether’s major business models with the release of USDT Stablecoin. When users deposit fiat currency, Tether mints USDT and invested the corresponding reserve to the assets that make up the yield.
Most of these reserves are Allocated to US Treasury BillsEspecially short-term security such as three months and 12-month T-bill, which pays frozen interest and is considered virtually no danger.
Advancement in the short -term ark has been yielding since 2022, when the US Federal Reserve It started its aggressive rate-hiking cycle, significantly strengthened Tether’s earnings. As the federal fund rate rises above 5%, it results in three months T-bills-among the most rates rate-raising tandem, giving Tether a strong tail for interest income.
For major holders of short periods of Treasurys duration such as Tether, this environment is translated into record revenues. Raised rates allowed the company to earn a huge return to its reserves while maintaining high liquidity.
However, as the produce remains elevated in history, the three-month yield of wealth is now sitting below its climax levels from 2023 and 2024, which is a potential signal of a need for T-Bill-rich companies to reduce their hope of interest income.
In addition to interest income, Tether also generated revenue from safe lending, releasing collateralized loans supported by its reserves – a business line that contributes to the overall profitability.
Despite the over -success of its basic business model, Tether is actively seeking to vary -its operations are different. Based on comments from Ardoino, the company has begun expanding new sectors – including a pivot toward infrastructure and energy productionfirst announced in late 2023.
In 2024, Tether made its first -this investment in crypto venture capitalMake funds to support arcanum capital.
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