Tether’s Retreat From a $500 Billion Valuation Sparks IPO Speculation

Tether, the issuer of the $185 billion USDT stablecoin, has significantly scaled back its private fundraising ambitions, reigniting questions about whether an initial public offering will ever happen.

The company had initially explored raising between $15 and $20 billion at a valuation of around $500 billion, a figure that would have placed it among the most valuable private companies in the world. More recently, however, market sources suggest Tether is now considering a much smaller raise of around $5 billion, or potentially no fundraising at all.

This shift follows months of speculation around a possible IPO. In late 2025, industry voices suggested that a public listing by Tether could eclipse other major stablecoin debuts, thanks to USDT’s dominant circulation and Tether’s revenue model. At the time, estimates valued the company above $500 billion, putting it in the same league as leading global technology and finance giants.

Investor sentiment has since cooled. Concerns have emerged around regulatory scrutiny, transparency of reserves, and past allegations related to illicit use. These issues have made investors more cautious about supporting such a high valuation.

Further caution came after a recent downgrade highlighted Tether’s increased exposure to higher-risk assets such as Bitcoin, gold, secured loans, and corporate bonds. Limited disclosure around custodians and counterparties has also contributed to a more conservative market outlook.

Despite this, Tether remains highly profitable. The company reported approximately $10 billion in profits in 2025, down from the previous year due to weaker Bitcoin prices, but partially offset by strong returns on gold reserves. According to management, the larger fundraising figures were never a firm target, and the company would be equally comfortable raising no external capital at all.

Given its strong cash generation, Tether does not appear to have an operational need for additional funding. Any potential fundraising would likely be aimed at strengthening credibility and forming strategic partnerships rather than securing liquidity.

This retrenchment also reshapes expectations around an IPO. While a public listing does not appear imminent, it has not been ruled out. More favorable regulatory developments in the United States, combined with compliant product initiatives, could eventually reopen the door if market conditions improve, though at a more realistic valuation.

Tether’s cautious stance sends a broader message across the crypto sector. As a central pillar of the digital asset market, its decision to prioritize profitability and fundamentals over hype highlights a shift in investor expectations. Sustainable growth and transparency are becoming essential, even for the most established names in crypto.