Tether Trims $20B Funding Goal Amid Investor Skepticism and $500B Valuation Debate
Tether, the issuer of USDt, the world’s largest stablecoin by market capitalization, has scaled back its ambitious $20 billion...
Quick overview
- Tether has reduced its funding plan from $20 billion to $5 billion amid investor caution.
- CEO Paolo Ardoino clarified that the previous $15–20 billion target was a misconception and not their actual goal.
- Despite scaling back fundraising, Tether maintains a $500 billion valuation, which some investors question.
- Tether has launched a new stablecoin, USAt, specifically for the U.S. market, which has already doubled in value since its launch.
Tether, the issuer of USDt, the world’s largest stablecoin by market capitalization, has scaled back its ambitious $20 billion funding plan amid investor caution. Financial Times sources report that company advisers are now recommending a reduction to $5 billion.
CEO Paolo Ardoino dismissed previous claims of a $15–20 billion target as a “misconception.” “That number is not our goal. It’s our maximum we were ready to sell. If we were selling zero, we would be very happy as well,” Ardoino said.
The decision reflects market skepticism around the funding target, but Tether is continuing operations without altering its broader strategic direction.
CEO Defends $500B Valuation
Despite scaling back fundraising, Tether continues to maintain a $500 billion valuation, though some investors have privately questioned the figure. Ardoino compared Tether’s profitability to AI companies such as OpenAI, which reportedly reached the same valuation after a SoftBank share sale in October 2025.
🚨 @tether scales back fundraising talks after valuation pushback
Tether stepped back from discussions to raise up to ~$20B after investors reacted negatively to a reported ~$500B valuation.
Advisers are now said to be considering a smaller round, around ~$5B. pic.twitter.com/1PHkqtoviH— CryptoPotato Official (@Crypto_Potato) February 4, 2026
In 2025, Tether posted $10 billion in profit, down 23% from the previous year, a figure Ardoino uses to justify the valuation in comparison with high-growth tech companies.
Tether operates USDt with a current market cap of $185 billion, alongside the gold-backed stablecoin XAUt valued at $3.6 billion, backed by 130 metric tons of physical gold, according to late January reports to Cointelegraph.
New Stablecoin Launch and Market Moves
Tether has also introduced USAt, a stablecoin tailored for the U.S. market under the GENIUS Act. Issued via Anchorage Digital Bank, USAt had a market capitalization of $20 million at launch, doubling in value shortly after, according to CoinGecko.
These developments highlight Tether’s continued innovation and efforts to diversify stablecoin offerings. While the revised funding plan signals caution, the company remains focused on maintaining its position as the largest stablecoin issuer globally.
Key Figures at a Glance:
- Funding plan scaled back: $20B → $5B
- USDt market cap: $185B
- XAUt market cap: $3.6B
- Physical gold reserves: 130 metric tons
- USAt market cap: $20M → $40M (doubled since launch)
- 2025 profit: $10B, down 23% YoY
- Tether valuation target: $500B
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