Original Title: Tether retreats from $20bn funding ambitions after investor pushback
Original Author: Jill R Shah, Financial Times
Translator: Peggy, BlockBeats
Editor’s Note: In the context of a cooling cryptocurrency market and pressure on valuation narratives, Tether finds itself in a delicate position. On one hand, the continuous expansion of USDT has made it an undeniable "new financial player" in the U.S. Treasury and gold markets; on the other hand, the high valuation expectation of $500 billion, the incomplete comprehensive audit, and long-standing regulatory and compliance controversies still keep potential investors cautious.
Tether's next steps may reflect not only its own choices but also the reality boundaries faced by the entire stablecoin industry.
The following is the original text:
Tether CEO Paolo Ardoino said, "The money these AI companies make is about the same as ours, except they have a negative sign in front."
As investors expressed doubts about its $500 billion valuation target, Tether, the world's largest stablecoin issuer, proactively lowered external expectations and attention regarding its funding scale.
The crypto group registered in El Salvador had initiated funding negotiations last year, planning to raise $15 billion to $20 billion, which, if successful, would place it among the most valuable private companies globally.
However, according to informed sources, after encountering investor hesitation, Tether's advisors have begun exploring the possibility of raising only about $5 billion.
Tether CEO Paolo Ardoino adjusted the potential funding scale, stating that the previously proposed target of $15 billion to $20 billion was a "misunderstanding."
"That number was not our target; it was just the upper limit of what we were willing to sell," he said in an interview. "Even if we sell not a single penny, we would still be very satisfied."
Ardoino stated that Tether is highly profitable and has received "a lot of interest" at the $500 billion valuation level. He added that the company has not yet decided how much equity to sell, partly because insiders are unwilling to reduce their stakes.
The company issues the dollar-pegged stablecoin USDT, which currently has a scale of about $185 billion and is regarded as the "reserve currency" of the digital asset market. Tether's control is concentrated in a small group of long-serving executives.
The market has been closely monitoring Tether's progress in bringing in well-known investors, viewing it as an important barometer of investor interest in the crypto industry. It is widely believed that this move is more about consolidating Tether's credibility and network, as the company generates billions of dollars in profits each year and does not urgently need new capital.
After Trump's election as president, the market briefly boosted digital asset prices due to expectations of a more favorable U.S. regulatory environment; however, over the past six months, as traders exited high-risk speculative assets, the crypto market has seen a significant decline.
Some investors privately expressed concerns about the $500 billion valuation, which would place Tether among the top private companies alongside AI firms like OpenAI and Anthropic, as well as Musk's SpaceX and TikTok's parent company ByteDance.
Ardoino stated that Tether—having disclosed a profit of about $10 billion last year, mainly from the asset reserve earnings supporting USDT's value—should receive a valuation comparable to those AI model companies that are still operating at a loss.
"The money these AI companies make is about the same as ours, except they have a negative sign in front," he said. "If you are willing to believe that an AI company with a huge negative sign is worth $800 billion, that is your freedom."
Both Tether and its financing advisor Cantor Fitzgerald declined to comment on the scale of this round of financing. This investment bank is led by the children of U.S. Commerce Secretary Howard Lutnick and also holds shares in Tether.
Informed sources noted that relevant negotiations are still ongoing, and financing terms may still change; if the overall crypto market strengthens again, investor sentiment may also reverse.
Tether's efforts to bring in heavyweight investors have been seen as an important signal of investor interest in the crypto industry.
Ardoino stated that the new U.S. stablecoin legislation signed into law by Trump, as well as the domestic competitor Circle's IPO last year, have further heightened market attention and momentum for Tether. Recently, Tether also launched a new token in the U.S. that complies with this regulatory framework.
However, informed sources said that some potential investors remain cautious about the regulatory risks surrounding Tether. Since its establishment in 2014, this crypto group has long faced scrutiny, with controversies mainly focused on whether its tokens are used for illegal activities and the transparency and quality of its asset reserves.
In recent years, Tether has begun to have the accounting firm BDO Italia regularly publish quarterly reserve attestations, but it has never undergone a complete independent audit.
Ardoino stated that the company has demonstrated to potential investors the depth of its technical tools in collaboration with law enforcement agencies in multiple countries to prove its capabilities in compliance and law enforcement cooperation.
S&P Global Ratings downgraded Tether's reserve rating to the lowest tier in its system at the end of last year, citing its increasing exposure to high-risk assets like Bitcoin and gold. In response, Ardoino stated at the time, "We take pride in your disdain."
Since 2020, the growth of USDT has accelerated significantly, making Tether one of the largest buyers of U.S. Treasuries globally and recently rising to become an important player in the gold market.
Such a large-scale asset allocation has made Tether one of the most critical connecting nodes between the global financial system and the highly volatile cryptocurrency world.
Compared to the previous year, Tether's profits in 2025 have decreased by about a quarter. Ardoino attributed this change to the decline in Bitcoin prices. He also added that benefiting from the rise in precious metal prices, the company has gained about $8 billion to $10 billion in profits from its gold holdings.
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