Reports suggest that an investment in Tether is being considered by SoftBank and ARK. This potential move could value the stablecoin issuer at up to $500 billion, as the company works to diversify its offerings beyond USDT.
Reportedly, two high-profile investment firms are competing to invest in stablecoin issuer Tether as it seeks to sell roughly 3% of its equity. This action highlights pent-up investor demand for one of the globe’s most profitable companies.
Based on a report by Bloomberg, a combined investment of up to $20 billion in Tether is being considered by venture capital giants SoftBank Group and ARK Investment Management, among other potential investors.
If successful, the funding round could value the company at up to $500 billion, placing it among the globe’s most valuable private enterprises.
For context, the developer of ChatGPT, OpenAI, is reportedly in discussions to raise capital at a comparable $500 billion valuation.
Earlier this week, Tether CEO Paolo Ardoino confirmed that the company is exploring a potential fundraise from a select group of high-profile key investors. He did not, however, disclose any specific names or amounts.
As part of its broader growth strategy, it was also hinted by Ardoino that Tether could expand into new business lines, including commodities, energy, and media.
The strong investor interest reflects Tether’s leading role in the stablecoin market, which has transformed from a tool for crypto traders into a key financial asset. In the U.S., stablecoins have been elevated to a national priority by the recently approved GENIUS Act, which aims to strengthen the dollar’s role in global finance.
With a market capitalization of approximately $173.6 billion, Tether’s flagship US dollar-backed stablecoin, USDT, remains the world’s largest.
Tether’s Huge Profits Highlight Push to Diversify Beyond Interest Income
Bolstered by extensive U.S. Treasury holdings and a rising Bitcoin reserve, Tether has become one of crypto’s most lucrative companies. A net income of $4.9 billion was reported in the second quarter of 2025—a notable 277% increase from the previous year.
Tether’s core business model is centered on the issuance of its USDt stablecoin. When users deposit fiat currency, USDT is minted by Tether, and the corresponding reserves are invested into yield-generating assets.
The majority of these reserves are allocated to U.S. Treasury bills, particularly short-term securities such as three-month and 12-month T-bills. These pay a fixed interest and are considered virtually risk-free.Since 2022, when the U.S. Federal Reserve began its aggressive rate-hiking cycle, the surge in short-term Treasury yields has significantly boosted Tether’s earnings. As the federal funds rate climbed above 5%, yields on three-month T-bills—among the most rate-sensitive maturities—also rose, providing a powerful tailwind for Tether’s interest income.
For major holders of short-duration Treasurys like Tether, this environment has translated into record profits. Elevated rates have allowed substantial returns on its reserves to be earned by the company while high liquidity is maintained.
Although yields remain at historically high levels, the three-month Treasury yield is now below its 2023 and 2024 peaks. This could signal a need for T-Bill-rich companies to lessen their dependence on interest income.
Tether has also generated revenue from secured lending, issuing collateralized loans backed by its reserves. This business line has further contributed to the company’s overall profitability, in addition to interest income.
Despite the immense success of its core business model, Tether is actively seeking to diversify its operations. Based on comments from Ardoino, new sectors, including a pivot toward infrastructure and energy production, have been expanded into by the company. This was first announced in late 2023.
In 2024, Tether’s initial venture capital investment was made to support Arcanum Capital.
