The post SoftBank, ARK Eye Stake in Massive Tether Fundraise: Report appeared on BitcoinEthereumNews.com. At least two high-profile investment companies are reportedly vying to back stablecoin issuer Tether as it looks to sell roughly 3% of its equity — a move that underscores pent-up investor demand for one of the world’s most profitable companies. According to Bloomberg, venture capital giants SoftBank Group and ARK Investment Management are among potential investors considering a combined investment of up to $20 billion in Tether.  As Cointelegraph reported this week, if successful, the funding round could value the company at up to $500 billion, placing it among the world’s most valuable private enterprises. For comparison, OpenAI, the developer behind ChatGPT, is said to be in talks to raise capital at a similar $500 billion valuation. Tether CEO Paolo Ardoino confirmed earlier this week that the company is exploring a potential fundraise “from a select group of high-profile key investors,” though he declined to disclose specific names or amounts.  Ardoino also hinted that Tether could expand into new business lines, including commodities, energy and media, as part of its broader growth strategy. Source: Paolo Ardoino The investor interest reflects Tether’s dominant position in the stablecoin market, which has evolved from a tool for crypto traders into a strategic financial asset. In the United States, the recently approved GENIUS Act has further elevated stablecoins as a national priority, aimed at strengthening the dollar’s role in global finance. Tether’s flagship US dollar-backed, USDt (USDT), remains the world’s largest stablecoin with a market capitalization of approximately $173.6 billion. USDT’s circulating supply continues to climb steadily. Source: DefiLlama Related: US Treasury opens second round of comments on Genius Act implementation Tether’s massive profitability and the need to move beyond interest income Backed by vast US Treasury holdings and a growing Bitcoin (BTC) reserve, Tether has become one of crypto’s most profitable companies, reporting… The post SoftBank, ARK Eye Stake in Massive Tether Fundraise: Report appeared on BitcoinEthereumNews.com. At least two high-profile investment companies are reportedly vying to back stablecoin issuer Tether as it looks to sell roughly 3% of its equity — a move that underscores pent-up investor demand for one of the world’s most profitable companies. According to Bloomberg, venture capital giants SoftBank Group and ARK Investment Management are among potential investors considering a combined investment of up to $20 billion in Tether.  As Cointelegraph reported this week, if successful, the funding round could value the company at up to $500 billion, placing it among the world’s most valuable private enterprises. For comparison, OpenAI, the developer behind ChatGPT, is said to be in talks to raise capital at a similar $500 billion valuation. Tether CEO Paolo Ardoino confirmed earlier this week that the company is exploring a potential fundraise “from a select group of high-profile key investors,” though he declined to disclose specific names or amounts.  Ardoino also hinted that Tether could expand into new business lines, including commodities, energy and media, as part of its broader growth strategy. Source: Paolo Ardoino The investor interest reflects Tether’s dominant position in the stablecoin market, which has evolved from a tool for crypto traders into a strategic financial asset. In the United States, the recently approved GENIUS Act has further elevated stablecoins as a national priority, aimed at strengthening the dollar’s role in global finance. Tether’s flagship US dollar-backed, USDt (USDT), remains the world’s largest stablecoin with a market capitalization of approximately $173.6 billion. USDT’s circulating supply continues to climb steadily. Source: DefiLlama Related: US Treasury opens second round of comments on Genius Act implementation Tether’s massive profitability and the need to move beyond interest income Backed by vast US Treasury holdings and a growing Bitcoin (BTC) reserve, Tether has become one of crypto’s most profitable companies, reporting…

SoftBank, ARK Eye Stake in Massive Tether Fundraise: Report

At least two high-profile investment companies are reportedly vying to back stablecoin issuer Tether as it looks to sell roughly 3% of its equity — a move that underscores pent-up investor demand for one of the world’s most profitable companies.

According to Bloomberg, venture capital giants SoftBank Group and ARK Investment Management are among potential investors considering a combined investment of up to $20 billion in Tether. 

As Cointelegraph reported this week, if successful, the funding round could value the company at up to $500 billion, placing it among the world’s most valuable private enterprises.

For comparison, OpenAI, the developer behind ChatGPT, is said to be in talks to raise capital at a similar $500 billion valuation.

Tether CEO Paolo Ardoino confirmed earlier this week that the company is exploring a potential fundraise “from a select group of high-profile key investors,” though he declined to disclose specific names or amounts. 

Ardoino also hinted that Tether could expand into new business lines, including commodities, energy and media, as part of its broader growth strategy.

Source: Paolo Ardoino

The investor interest reflects Tether’s dominant position in the stablecoin market, which has evolved from a tool for crypto traders into a strategic financial asset. In the United States, the recently approved GENIUS Act has further elevated stablecoins as a national priority, aimed at strengthening the dollar’s role in global finance.

Tether’s flagship US dollar-backed, USDt (USDT), remains the world’s largest stablecoin with a market capitalization of approximately $173.6 billion.

USDT’s circulating supply continues to climb steadily. Source: DefiLlama

Related: US Treasury opens second round of comments on Genius Act implementation

Tether’s massive profitability and the need to move beyond interest income

Backed by vast US Treasury holdings and a growing Bitcoin (BTC) reserve, Tether has become one of crypto’s most profitable companies, reporting $4.9 billion in net income in the second quarter of 2025 — marking a 277% increase compared to one year earlier.

Tether’s core business model centers on issuing its USDt stablecoin. When users deposit fiat currency, Tether mints USDT and invests the corresponding reserves into yield-generating assets. 

The majority of these reserves are allocated to US Treasury bills, particularly short-term securities such as three-month and 12-month T-bills, which pay fixed interest and are considered virtually risk-free.

The yield on the 3-month Treasury bill has surged since 2022. Source: CNBC

The surge in short-term Treasury yields since 2022, when the US Federal Reserve began its aggressive rate-hiking cycle, has significantly boosted Tether’s earnings. As the federal funds rate climbed above 5%, yields on three-month T-bills — among the most rate-sensitive maturities — rose in tandem, providing Tether with a powerful tailwind for interest income.

For major holders of short-duration Treasurys like Tether, this environment translated into record profits. Elevated rates have allowed the company to earn substantial returns on its reserves while maintaining high liquidity. 

However, while yields remain historically elevated, the three-month Treasury yield now sits below its peak levels from 2023 and 2024, potentially signaling a need for T-Bill-rich firms to reduce their reliance on interest income. 

Tether’s Bitcoin holdings have eclipsed 100,000 BTC. Source: BitcoinTreasuries.NET

In addition to interest income, Tether has also generated revenue from secured lending, issuing collateralized loans backed by its reserves — a line of business that has further contributed to its overall profitability.

Despite the overwhelming success of its core business model, Tether is actively seeking to diversify its operations. Based on comments from Ardoino, the company has begun expanding into new sectors — including a pivot toward infrastructure and energy production, first announced in late 2023.

In 2024, Tether made its first crypto venture capital investment, committing funds to support Arcanum Capital.

Related: Peso in freefall: US lifeline to Argentina met with Bitcoiners’ doubt

Source: https://cointelegraph.com/news/softbank-ark-tether-20b-funding-500b-valuation?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound

Market Opportunity
ARK Logo
ARK Price(ARK)
$0,1772
$0,1772$0,1772
-%6,04
USD
ARK (ARK) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

Buterin pushes Layer 2 interoperability as cornerstone of Ethereum’s future

Buterin pushes Layer 2 interoperability as cornerstone of Ethereum’s future

Ethereum founder, Vitalik Buterin, has unveiled new goals for the Ethereum blockchain today at the Japan Developer Conference. The plan lays out short-term, mid-term, and long-term goals touching on L2 interoperability and faster responsiveness among others. In terms of technology, he said again that he is sure that Layer 2 options are the best way […]
Share
Cryptopolitan2025/09/18 01:15
White House meeting could unfreeze the crypto CLARITY Act this week, but crypto rewards likely to be the price

White House meeting could unfreeze the crypto CLARITY Act this week, but crypto rewards likely to be the price

White House stablecoin meeting could unfreeze the CLARITY Act, but your USDC rewards may be the price The newly confirmed Feb. 10 White House meeting on stablecoin
Share
CryptoSlate2026/02/09 18:48
Aave DAO to Shut Down 50% of L2s While Doubling Down on GHO

Aave DAO to Shut Down 50% of L2s While Doubling Down on GHO

The post Aave DAO to Shut Down 50% of L2s While Doubling Down on GHO appeared on BitcoinEthereumNews.com. Aave DAO is gearing up for a significant overhaul by shutting down over 50% of underperforming L2 instances. It is also restructuring its governance framework and deploying over $100 million to boost GHO. This could be a pivotal moment that propels Aave back to the forefront of on-chain lending or sparks unprecedented controversy within the DeFi community. Sponsored Sponsored ACI Proposes Shutting Down 50% of L2s The “State of the Union” report by the Aave Chan Initiative (ACI) paints a candid picture. After a turbulent period in the DeFi market and internal challenges, Aave (AAVE) now leads in key metrics: TVL, revenue, market share, and borrowing volume. Aave’s annual revenue of $130 million surpasses the combined cash reserves of its competitors. Tokenomics improvements and the AAVE token buyback program have also contributed to the ecosystem’s growth. Aave global metrics. Source: Aave However, the ACI’s report also highlights several pain points. First, regarding the Layer-2 (L2) strategy. While Aave’s L2 strategy was once a key driver of success, it is no longer fit for purpose. Over half of Aave’s instances on L2s and alt-L1s are not economically viable. Based on year-to-date data, over 86.6% of Aave’s revenue comes from the mainnet, indicating that everything else is a side quest. On this basis, ACI proposes closing underperforming networks. The DAO should invest in key networks with significant differentiators. Second, ACI is pushing for a complete overhaul of the “friendly fork” framework, as most have been unimpressive regarding TVL and revenue. In some cases, attackers have exploited them to Aave’s detriment, as seen with Spark. Sponsored Sponsored “The friendly fork model had a good intention but bad execution where the DAO was too friendly towards these forks, allowing the DAO only little upside,” the report states. Third, the instance model, once a smart…
Share
BitcoinEthereumNews2025/09/18 02:28