At the beginning of February, the world’s largest stablecoin issuer, Tether, revised its fundraising target, slashing its originally planned $15–20 billion raise to approximately $5 billion.
This change wasn’t due to a lack of appeal. According to Tether CEO Paolo Ardoino, the company has already received "substantial interest" at a $500 billion valuation.
He stated bluntly that even if the company doesn’t sell a single share, they remain highly satisfied.
Fundraising Pullback
In 2025, Tether ambitiously launched fundraising talks, aiming to raise $15–20 billion and position itself among the world’s most valuable private companies.
Investors questioned the $500 billion valuation, which would place Tether alongside tech giants like OpenAI, SpaceX, and ByteDance.
Sources familiar with the matter revealed that, after encountering investor hesitation, Tether’s advisors began exploring the possibility of raising only about $5 billion.
Tether CEO Paolo Ardoino later scaled back the potential fundraising amount, describing the previously cited $15–20 billion target as "a misunderstanding."
"That number wasn’t our goal—it was simply the upper limit of what we’d be willing to sell," Ardoino said in an interview. He added that the company is highly profitable, generating billions in annual profit, and has no urgent need for additional capital.
Business Pillars
Registered in El Salvador, this crypto group’s core product is the US dollar-pegged stablecoin USDT, currently with a market size of roughly $185 billion. USDT is widely regarded as the "reserve currency" of the digital asset market.
Tether’s success rests on two pillars: massive market scale and robust profitability. According to Yahoo Finance, as of February 9, 2026, USDT was priced at $0.999156, with 24-hour trading volume reaching $78,769,086,464.
On the profitability front, Tether posted about $10 billion in profit for 2025. Although this was down from $13.7 billion in 2024, it remains a striking figure.
Ardoino attributed the profit decline to a drop in Bitcoin prices, while emphasizing that the company earned $8–10 billion from its gold holdings.
Asset Empire
Another major strength for Tether is its vast asset reserves and diversified allocation strategy. The company’s total reserves have reached a high of $193 billion, with a shift toward low-risk, highly liquid assets.
Tether’s direct holdings in US Treasuries have surpassed $122 billion, marking a historic peak.
Gold has also become a key component in Tether’s asset allocation. Ardoino recently stated that the company plans to allocate 10–15% of its portfolio to gold.
In just the final quarter of 2025, Tether added roughly 27 metric tons of gold to its holdings.
Market Concerns
Despite Tether’s strong financial performance and sizable asset reserves, investors remain wary.
S&P Global Ratings downgraded Tether’s reserve rating to the lowest tier in its system late last year.
The downgrade cited Tether’s increasing exposure to high-risk assets such as Bitcoin and gold. Ardoino responded at the time, saying, "We are proud of your aversion."
Regulatory risk is another major concern for investors. Since its founding in 2014, Tether has faced ongoing scrutiny, with controversies focused on whether its tokens are used for illicit activities and questions about the transparency and quality of its asset reserves.
Some investors remain cautious due to Tether’s lack of a comprehensive, independent audit.
Industry Anchor
Tether is becoming one of the most crucial links between the global financial system and the crypto world. Since 2020, USDT’s growth has accelerated, making Tether one of the largest buyers of US Treasuries worldwide.
In recent months, the company has also emerged as a significant player in the gold market.
Such large-scale asset allocation has given Tether a unique position in global financial markets. It acts as a "central bank" within the crypto sector and is increasingly a force to be reckoned with in traditional finance.
For investors, Tether’s efforts to attract prominent backers have long been seen as a key indicator of broader interest in the crypto industry.
The reduction in fundraising size may reflect a shift in market risk appetite for the crypto sector as a whole, not just for Tether itself.
Future Strategy
Facing market skepticism and regulatory challenges, Tether is actively adjusting its strategy to strengthen its market position.
Ardoino noted that the new US stablecoin legislation signed into law by Trump, along with domestic competitor Circle’s public listing last year, have further heightened attention and momentum for Tether.
Recently, Tether launched a new token in the US called USAT, designed to comply with this regulatory framework. This move marks an important step in adapting to regulatory changes.
Ardoino told Reuters that Tether’s profit in 2026 is expected to exceed the $10 billion earned in 2025, and may even surpass the $13.7 billion recorded in 2024.
This forecast demonstrates the company’s confidence in its future growth.
At the same time, Tether is showcasing its advanced compliance and enforcement technology to potential investors, highlighting its ability to collaborate with law enforcement agencies across multiple countries.
Conclusion
On Gate’s trading platform, USDT remains stable around $1, with daily trading volumes consistently high. Behind this seemingly simple number stands a financial giant generating nearly $10 billion in annual profit.
The market continues to closely watch Tether’s progress in attracting prominent investors, viewing it as a key barometer of investor interest in the crypto sector.
Today, Tether’s fundraising adjustment reflects more than just a strategic shift for one company. It signals a broader reassessment of the sustainability of stablecoin business models and prompts renewed consideration of the integration between crypto and traditional finance.
