LONDON, 26 September 2025 — SoftBank Group and ARK Investment Management are reportedly in advanced discussions to participate in a massive funding round for Tether Holdings, the issuer behind the world’s largest stablecoin, USDT. The deal, which could raise between US$15 billion and US$20 billion for about a 3% equity stake, implies a valuation for Tether in the realm of US$500 billion — putting it among the highest-valued private firms globally.
If confirmed, the move would mark a major bet by mainstream finance players on the stablecoin issuer, signaling confidence in Tether’s model and ambitions beyond just issuing USDT. ARK and SoftBank, both known for bold bets in tech and fintech arenas, would bring institutional legitimacy and capital to a business long anchored in crypto circles.
Tether’s Offer & Strategic Pitch
Tether is structuring the fundraise as a private placement, offering the minority stake to a select group of investors rather than a broad public offering. Sources have indicated that the company is being advised by Cantor Fitzgerald, the investment bank long associated with its capital and reserve custody operations.
The 3% stake sale implies that Tether expects its total equity value to hit about US$500 billion — a remarkable scale given its private status. The funds are expected to help accelerate Tether’s expansion into new verticals, upgrade infrastructure, and strengthen its balance sheet.
While Tether is best known for issuing USDT, its growth ambitions reportedly extend into artificial intelligence, telecommunications, cloud computing, and real estate, diversifying its revenue beyond interest earnings and transactional fees.
Why SoftBank and ARK Matter
SoftBank and ARK are heavyweight names in tech investing. SoftBank’s Vision Fund has backed disruptive startups globally, while ARK—led by Cathie Wood—has been an early backer in disruptive themes like genomics, robotics, and blockchain. Their participation would send a strong signal that stablecoins and digital asset infrastructure are entering a new institutional phase.
Their involvement could help Tether unlock partnerships, regulatory paths, and credibility among cautious institutional capital. It may also help bridge the gap between crypto and traditional finance, enabling stablecoins to play a more integrated role in global capital markets.
However, aligning interests won’t be trivial. SoftBank and ARK will insist on governance safeguards, assurances about reserve transparency, regulatory risk management, and exit terms — especially in a sector as fraught as crypto.
Risks & Challenges
Such a bold valuation comes with elevated expectations and risks:
- Regulatory scrutiny: Stablecoins are under increasing focus globally. Tether will need to demonstrate robust reserve backing, transparency, and compliance to satisfy regulators and institutional stakeholders.
- Execution risk: Translating capital into profitable growth in new verticals (AI, real estate) is easier said than done. Investors will watch Tether’s ability to scale without overreach.
- Market sentiment: Crypto markets are volatile. If trust in stablecoins falters — owing to regulatory shifts, reserve doubts, or macro shocks — a high valuation could unravel quickly.
Still, the sheer scale of the raise and investor interest suggests many believe the reward may outweigh the risk.
