Tether is aiming for a $500 billion valuation in its upcoming funding round, a strategic initiative designed to solidify its market dominance and support its expansion into new financial sectors.

Tether, the issuer of the world's largest stablecoin USDT, is reportedly in discussions to raise between $15 billion and $20 billion through a private placement. This funding round would value the El Salvador-based company at approximately $500 billion, placing it among the elite ranks of the world's most valuable private firms, alongside giants like OpenAI and SpaceX.

The proposed deal involves selling roughly a 3% stake in Tether, with investment bank Cantor Fitzgerald facilitating the private placement. Unlike a public IPO, this approach allows Tether to maintain control and avoid the intense disclosure requirements of going public. CEO Paolo Ardoino has emphasized a preference for private growth, stating that the company has no immediate plans for a stock market listing.

A key narrative emerging from this raise is its potential to supercharge Tether-aligned projects, none more prominent than Plasma—a Tether-backed Layer-1 blockchain purpose-built for stablecoins. Launched with mainnet beta slated for September 25, 2025, Plasma positions USDT as a "first-class citizen," offering zero-fee transfers, institutional-grade security, and near-instant settlements. Backed by Bitfinex and Ardoino himself, Plasma has already raised $74 million at a $500 million valuation, with projections of over $2 billion in stablecoin TVL at launch.

Tether's massive infusion could indirectly fuel Plasma's growth, perhaps through deeper integrations or liquidity provisions. Plasma's "super-app" Plasma One—a USDT-native neobank with 10%+ yields, cards, and global coverage—exemplifies this synergy, centering operations around USDT for remittances, savings, and payments across 150 countries. This raise might enable Tether to allocate resources toward Plasma, enhancing its role as a hub for stablecoin innovation.

The move comes as the digital asset market continues to evolve, with institutional interest and regulatory scrutiny growing in tandem. By securing a higher valuation, Tether aims to enhance its capital base, enabling further investment in its infrastructure and new product offerings. This effort is critical for maintaining its leadership position against a backdrop of increasing competition from other stablecoin issuers and emerging decentralized finance (DeFi) alternatives.