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Tether, the issuer of USDT, is targeting a $500 billion valuation and has given investors 14 days to commit funds. The firm, which earned over $10 billion in net profits last year, plans to expand into stablecoins, AI, and energy. This move comes amid growing interest in AI + crypto news and broader crypto news. The valuation, if achieved, would surpass Circle’s by more than 22 times.

Key Insights:

• As per the latest stablecoin news, Tether, the company behind USDT, is looking to secure a $500 billion valuation.
• For this, it has set a 14-day deadline for potential investors to make their decision.
• If realized, such a deal could place the company’s valuation more than 22 times higher than that of Circle.

USDT stablecoin issuer Tether is aiming for a massive $500 billion valuation, driven by an ongoing capital raise that has caught the financial industry’s attention. According to the latest stablecoin news, the company has set a two-week deadline for investors to commit funds.

Stablecoin News: Tether Aims For $500 Billion Valuation

The Information report suggests that if the backing isn’t strong enough, the company might have to put the deal on hold. While Tether started exploring funding options late last year, its ambitious valuation has made some investors hesitant, slowing progress.

If Tether lands this $500 billion valuation, it’ll leap ahead of almost every U.S. bank except JPMorgan Chase. That’s pretty remarkable considering how crowded the stablecoin space has become with Circle’s USDC and Ripple’s RLUSD gaining traction.

These issuers are fighting for greater market share and seeking to secure their position amid regulatory uncertainty as the CLARITY Act advances. Despite all the buzz, Tether hasn’t publicly responded to questions about how fundraising is going.

Earlier in February, rumors suggested Tether scaled back its capital raise, reportedly dropping the target from $15-20 billion to as low as $5 billion because investors were uneasy about the high valuation.

Nonetheless, Tether CEO Paolo Ardoino pushed back against these claims. In an interview with Reuters, he said that the upper numbers were only hypothetical and not firm targets or fundraising plans.

He added that Tether still sees strong investor interest. Hence, they’re aiming for a valuation of as high as the $500 billion mark, which is more than 22 times Circle (CRCL) stock’s market capitalization.

The CRCL stock has been recording a downtrend lately, with a drop of nearly 8% last week. Moreover, it’s almost 70% down from its all-time high of $298.99 since its inception last year. Hence, if Tether bags a deal, it could certainly gain further advantage against Circle.

How Will Tether Use the Funds Raised?

Ardoino emphasized that initially, Tether’s conversations with investors were less about urgency or raising the maximum possible amount and more about matching values and aligning long-term goals. Over the past months, this approach has gradually shifted, per stablecoin news reports.

Back in September 2025, Ardoino said Tether was considering raising capital from a select group of prominent investors. With this move, it aims to expand into sectors including stablecoins, distribution, AI, commodity trading, energy, communications, and media.

However, by February 2026, his tone changed as he mentioned that Tether didn’t actually need outside funding, signaling confidence in the company’s financial health. As of now, the company remains the leading stablecoin issuer, with net profits topping $10 billion last year.

Meanwhile, Tether hasn’t slowed its product innovation, according to recent stablecoin news updates. In January, they launched USAT, a U.S. dollar-backed stablecoin designed to comply with crypto regulations under the GENIUS Act.

Furthermore, in March 2026, they announced they had hired a ‘Big Four’ accounting firm for their first full audit. The company described the process as “the biggest ever inaugural audit in the history of financial markets.”

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