Tether, the world’s largest stablecoin issuer, is reportedly seeking between $15 billion and $20 billion in funding at a staggering $500 billion valuation, according to Bloomberg. If successful, this would place Tether in the same league as global tech giants like SpaceX and OpenAI, and far ahead of its closest rival, Circle, which is valued at roughly $30 billion.
The raise, led by investment bank Cantor Fitzgerald, would represent around a 3% equity stake in the company and would involve new shares rather than secondary sales by existing investors.
Tether’s Bold Expansion Plans
CEO Paolo Ardoino explained that the raise will allow Tether to expand its strategy “across all existing and new business lines, by several orders of magnitude.” While Tether is best known for its flagship stablecoin USDT, the company is diversifying into multiple industries, including:
- Artificial Intelligence
- Commodity trading
- Energy infrastructure
- Communications and media
This aggressive diversification reflects Tether’s ambition to become more than just a crypto powerhouse, it aims to be a global fintech and technology conglomerate.
A Return to the US Market
After years of regulatory battles during the Biden administration, Tether is planning a major return to the U.S. under the pro-crypto Trump administration. The firm recently launched USAT, a new U.S.-regulated stablecoin under the GENIUS Act, and appointed Bo Hines, a former White House crypto official, as CEO of its American business.
This marks a significant shift, as Tether looks to cement itself not just globally, but also in one of the world’s most important financial markets.
Unprecedented Profits
Tether’s financials are eye-catching. The company reportedly earned $4.9 billion in Q2 2025 alone, largely from investing its reserves into U.S. Treasurys and other low-risk assets. With a 99% profit margin, it is arguably one of the most profitable companies in the world.
This profitability, combined with its $173 billion circulating supply of USDT, representing 56% of the global stablecoin market, underscores its dominance. By comparison, Circle’s USDC supply stands at $74 billion, with a 25% market share.
The Global Stablecoin Market Is Booming
Stablecoin demand continues to rise. Total market capitalization is now close to $300 billion, and USDT supply has grown 26% in 2025 alone. The passage of the GENIUS Act earlier this year has further accelerated adoption by giving stablecoins more legal clarity in the U.S.
Why This Matters for Africa
While the numbers are staggering on a global scale, the implications for Africa’s financial landscape are just as profound. Stablecoins like USDT are already serving as a critical tool for millions across the continent:
- Inflation Hedge: In countries like Nigeria, Ghana, and Zimbabwe, USDT provides a stable store of value amid local currency depreciation.
- Cross-Border Payments: Remittances to Africa remain among the most expensive globally, with fees averaging above 8%. Stablecoins slash costs, making transfers faster and cheaper.
- Business Settlements: SMEs are increasingly using stablecoins to bypass FX restrictions and access global trade.
- DeFi Participation: Stablecoins are the entry point for Africans engaging in decentralized finance platforms.
Tether’s massive valuation and growth could signal greater liquidity and accessibility for African users relying on stablecoins as a financial lifeline. With mobile-first adoption, crypto-friendly platforms like Yellow Card, Finna, and VALR are making USDT more usable for everyday transactions across the continent.
Industry Reactions
Market analysts are already weighing in. Arthur Hayes, former BitMEX CEO, suggested the move could spell the end for Circle, while Ram Ahluwalia of Lumida Wealth called Tether “one of the best businesses in the world.”
If Tether secures its $20 billion raise, it won’t just be a milestone for crypto, it will be a turning point in global finance. And for Africa, where stablecoins are more than speculation, they’re survival tools, this could mean deeper integration, more liquidity, and greater financial inclusion.
