Haciyev Reşit 
Tether, one of the largest players in the cryptocurrency market, has decided to scale down its planned large-scale investment round. The company behind the USDT stablecoin lowered its external funding target from an initially expected range of $15–20 billion to $5 billion, opting for a more cautious approach. This step back is reportedly due to potential investors viewing Tether’s proposed $500 billion company valuation as excessively high and expensive. The combination of market conditions, regulatory uncertainty, and valuation debates led investors to seek more limited commitments, prompting Tether to revise its investment plans.
A $500 Billion Valuation Failed to Convince Investors
According to information reported by the Financial Times, Tether aimed to achieve an extremely high valuation by selling only a small portion of the company. Previous reports in U.S. media suggested that approximately 3% of Tether could be sold for $15–20 billion. If such a scenario had materialized, the company would have reached a $500 billion valuation, making it one of the largest private companies in the world.
However, potential investors reportedly considered this valuation overly ambitious and high-risk given current market conditions, volatility in the crypto sector, and regulatory uncertainties. These concerns from investors led to a significant reduction in the size of the planned funding round and a shift toward more realistic targets.
Global investment firms such as SoftBank and Ark Invest were also rumored to be among potential investors in the round. However, the reduction of the target from $15–20 billion to $5 billion suggests that these talks did not progress at the expected pace or scale. According to experts, this situation reflects not only valuation concerns but also the decisive role of market conditions and regulatory uncertainty in investor decision-making.
CEO Ardoino: “We Don’t Need the Money”
Commenting on the matter, Paolo Ardoino argued that Tether does not actually need large amounts of external capital. In a statement to the Financial Times, Ardoino said:
“$20 billion was the final and highest figure Tether considered. There was a misunderstanding here. Tether is already an extremely profitable company. We don’t need additional capital.”
This statement has been interpreted as Tether viewing the funding round not as a financial necessity, but as an optional opportunity to evaluate potential strategic advantages. It also conveys the message that, thanks to its profitability and strong balance sheet, the company is not pursuing a growth strategy dependent on outside capital.
Regulatory Concerns and the “Tether FUD” Effect
The report also notes that investor concerns were not limited to valuation alone. Regulatory uncertainty—particularly increasing scrutiny of stablecoins in the U.S. and Europe—has made investors more cautious about committing large sums of capital. The long-standing concept of “Tether FUD” (Fear, Uncertainty, and Doubt) in crypto markets also plays a role in these concerns. Tether has frequently been the subject of debate in the past due to issues related to reserve transparency and regulatory challenges.
Meanwhile, Tether remains one of the world’s largest holders of U.S. Treasury bonds. The company has also drawn attention in recent periods by diversifying its balance sheet with quarterly investments in Bitcoin, gold, and land. Despite scaling down its investment round, Tether’s financial strength is emphasized as remaining intact.
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