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Tether, the $185 billion USDT stablecoin issuer, has drastically scaled back its fundraising ambitions.
This raises doubts about the potential of an IPO that was previously driven by speculation from cryptocurrency insiders such as Arthur Hayes, co-founder of BitMEX.
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Investor reaction is forcing Tether to reassess its funding ambitions
Tether initially explored a $15-20 billion raise to a $500 billion valuation. This figure would have placed the stablecoin issuer among the most valuable private companies in the world.
However, according to the Financial Times, Tether is now considering at least $5 billion, or perhaps no growth at all.
The latest decline comes after a year of intensified market talks. In September 2025, Hayes rekindled Tether’s IPO speculation, suggesting that the company’s listing of a stablecoin public issue could top Tether. On the successful appearance of the USDC Circle indicator.
At that time, Tether’s valuation was over $500 billion. This puts it alongside technology and financial giants like SpaceX, OpenAI and ByteDance.
Hayes framed the potential listing as a strategic moveTether’s $185 billion USDT distribution and revenue generation structure gives it a competitive advantage over Circle.
However, investor sentiment defied the hype. Supporters objected to the hefty $500 billion valuation, citing the following:
- Regulatory audit
- It reserves transparency concerns, and
- Previous allegations of illegal use.
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Tether remains profitable amid market headwinds, making an IPO optional
S&P Global Ratings recently downgraded its rating Highlight Tether’s exposure to riskier assets like Bitcoin and goldwhich increased caution.
“There has been an increase in high-risk assets in Tether’s reserves over the past year, including bitcoin, gold, collateralized loans, corporate bonds, and other investments, all with limited disclosures and subject to credit, market, interest rate, and exchange rate risks. Tether continues to provide limited information on the creditworthiness of its custodians, counterparties, or “SP & account providers” he said. As reported Reuters quotes S&P.
The decline in the broader cryptocurrency market over the past six months has dampened enthusiasm for sky-high valuations, even for the most profitable players in the sector.
However, Arduino remains confident in the principles of Tether. He described the figure of between $15 and $20 billion as a misconception. According to Arduino, the company will be “very happy” to raise zero capital.
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“This number is not our goal. This is the maximum, we were ready to sell… If we had sold zero, we would have been very happy.” As stated In the report that mentions Arduino.
Tether has reported earnings of $10 billion by 2025Down about 23% from the previous year due to falling Bitcoin prices, but unfortunate with strong returns on gold.
While maintaining stable profitability, Tether needs little additional money to operate. This suggests that fundraising is as much about credibility and strategic partnerships as it is about money.
Tether Goes Public: Just a Pipe Dream?
This forum also reshapes expectations for Tether’s initial public offering. While a public listing is no longer imminent, regulatory winds and strategic initiatives keep the option alive.
US stablecoin legislation under President Trump may provide… New USAT compatible token from TetherA path to legitimacy in the local market.
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Therefore, the stage could be paved for a potential IPO 2026 if market conditions improve, although the valuation may need to be recalibrated.
However, Tether’s cautious turn carries a broader signal for the cryptocurrency ecosystem. As the reserve currency of the market with huge holdings of treasurers and gold, the decline of the company is highlighted. An increasing focus on profitability and transparency rather than hype.
For other highly valued cryptocurrency companies seeking public markets, Tether’s experience can serve as a key model: sustainable growth and strong fundamentals have become more important for investor confidence, even for industry brand names.
It is also worth noting that the CEO of Tether, Paolo Arodino, once said that the company does not need to go public. However, he didn’t rule it out either.
