SoftBank and Cathie Wood’s Ark in talks to participate in Tether’s major investment

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Japan’s SoftBank Group and Ark Investment Management, led by “Cathy Wood,” are in talks to participate in a major investment round for Tether Holdings SA, the issuer of USDT. This move could solidify Tether’s position as one of the world’s largest private companies.

These two investors, both highly active in the tech sector, along with several other well-known institutions, are currently in early discussions to provide funding support to Tether, the world’s largest stablecoin issuer. According to sources, this is Tether’s largest ever attempt at external fundraising.

Media reports earlier this week stated that this fundraising round could value Tether as high as $500 billion, putting it among the world’s most valuable private companies. The company plans to sell about 3% of its shares through a private placement, aiming to raise $15 to $20 billion.

Both SoftBank and Tether declined to comment. Ark representatives also have not yet responded.

Support from these two investment giants, SoftBank and Ark, will help Tether expand its business scope and further enhance its mainstream recognition in the technology and finance sectors. Tether is also seeking greater political legitimacy in markets including the US; previously, it had faced scrutiny for alleged involvement in illicit financing.

Tether’s advisor for this round is New York-based investment bank Cantor Fitzgerald LP, long led by current US Secretary of Commerce Howard Lutnick, and responsible for safeguarding Tether’s assets.

Tether’s core product is USDT, a dollar-pegged digital asset that allows holders to transfer funds outside the traditional banking system. Based in El Salvador, Tether has amassed substantial wealth by investing reserve funds in cash-like assets, such as US Treasury bonds, and earning interest.

The company is led by CEO Paolo Ardoino and co-founder Giancarlo Devasini, who also serves as chairman and is the largest shareholder. If Tether’s valuation reaches $500 billion, Bloomberg estimates Devasini’s stake would be worth close to $224 billion.

Headquartered in Tokyo, SoftBank’s founder Masayoshi Son is famed for bold tech investments. Its portfolio covers data centers, autonomous driving, semiconductors, and a planned $30 billion investment in OpenAI.

Ark, led by “Cathy Wood,” has previously invested in stablecoins, including Tether’s biggest rival, Circle Internet Group. Circle is now publicly listed. The market value of Circle’s stablecoin is around $74 billion, while tokens held by Tether users are worth as much as $173.5 billion.

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