- SoftBank and Ark Investment eye multibillion-dollar funding for Tether.
- Tether’s potential $20 billion funding round could boost its valuation.
- SoftBank, Ark Investment could strengthen Tether’s position in cryptocurrency.
According to Bloomberg, SoftBank and Cathie Wood’s Ark Investment are reportedly interested in joining a major funding round for Tether, the world’s largest stablecoin issuer. The two prominent investors, known for their long-standing involvement in technology investments, are among several major players in early discussions to contribute capital to Tether.
This funding round, which could raise as much as $20 billion, would elevate Tether to a $500 billion valuation, potentially making it one of the most valuable private companies globally, alongside tech giants like OpenAI and SpaceX.
Tether’s current valuation underscores its growing influence in the cryptocurrency market, where it continues to lead as the largest stablecoin issuer with a $173 billion supply of USDT tokens.
The company is also exploring launching a USD-pegged stablecoin aimed at the U.S. market. Despite these developments, Tether’s Chief Strategy Officer, Bo Hines, emphasized that the company does not have plans to raise funds at the moment. The ongoing discussions indicate the increasing interest in stablecoins and the role they play in digital finance.
Strategic Partnerships and Potential Impact
Tether’s significant backing from influential investors such as SoftBank, Cantor Fitzgerald, and Ark Investment could signal an important shift in the stablecoin and broader cryptocurrency landscape.
The involvement of these investors highlights the continued integration of traditional financial institutions with the crypto world. Notably, Cantor Fitzgerald, which is also listed as a Tether shareholder, is advising the deal, adding another layer of credibility and influence to the potential agreement.
As Tether continues to explore ways to expand its offerings, particularly within the U.S. market, the funding round could further strengthen its position.
The partnership with SoftBank and Ark Investment, both recognized for their expertise in tech-driven sectors, suggests that Tether’s growth may soon be bolstered by the injection of external capital, accelerating its plans and positioning it for a more prominent role in global finance.
With the crypto market continuing to evolve, Tether’s ongoing efforts to raise capital reflect a broader trend of institutional involvement in the sector. As the company seeks to scale its operations, the involvement of these heavyweight investors could unlock new opportunities for both Tether and the stablecoin market as a whole.
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