Tether’s $500 Billion Fundraising Retreat Stokes Speculation—Is an IPO Ever Coming?

Tether, issuer of the $185 billion USDT stablecoin, has dramatically scaled back its private fundraising ambitions. It raises doubts about a potential IPO once fueled by speculation from crypto insiders like BitMEX co-founder Arthur Hayes. Investor Pushback Forces Tether to Reassess Funding Ambitions Tether was initially exploring a $15–20 billion raise at a $500 billion valuation. The figure would have placed the stablecoin issuer among the world’s most valuable private firms. However, according to the Financial Times, Tether is now considering as little as $5 billion, or potentially no raise at all. The latest pullback follows a year of heightened market chatter. In September 2025, Hayes reignited Tether IPO speculation, suggesting a public listing for the stablecoin issuer could overshadow Circle’s successful USDC debut. At the time, Tether’s valuation was pegged at over $500 billion. This positioned it alongside tech and finance giants such as SpaceX, OpenAI, and ByteDance. Hayes framed the potential listing as a strategic move, with Tether’s USDT circulation of $185 billion and its revenue-generating structure giving it a competitive edge over Circle. Yet investor sentiment has tempered the hype. Backers reportedly balked at the lofty $500 billion valuation, citing: Regulatory scrutiny Reserve transparency concerns, and Past allegations of illicit use. Tether Stays Profitable Amid Market Headwinds, Keeping IPO Optional A recent S&P Global Ratings downgrade highlighted Tether’s exposure to riskier assets, such as Bitcoin and gold, further heightening caution. “S&P said there had been an increase in high-risk assets in Tether’s reserves over the past year, including bitcoin, gold, secured loans, corporate bonds, and other investments, all with limited disclosures and subject to credit, market, interest-rate, and foreign-exchange risks. Tether continues to provide limited information on the creditworthiness of its custodians, counterparties, or bank account pro...