Rich by Coin

Reports that Tether is in early discussions regarding a potential capital raise of up to $20 billion at a valuation that could approach $500 billion marks a significant inflection point for the stablecoin industry. With approximately $186 billion of USDT in circulation and reported annual profits nearing $15 billion, Tether already operates at a scale comparable to major global financial firms, despite remaining privately held. One of the most consequential aspects of this strategy is the reported exploration of equity tokenization as a liquidity mechanism. Tether’s launch of Hadron, its own tokenization platform, in late 2024 was positioned as infrastructure for tokenizing stocks, bonds, and other real-world assets, and tokenizing equity does not displace securities regulation; it changes the rails on which ownership is recorded and transferred, raising questions about transfer restrictions, KYC, and the venues on which such instruments can trade.

Public markets are increasingly treating capital deployment by stablecoin issuers as a meaningful signal, reflecting confidence in balance-sheet strength, long-term commitment, and growing role as strategic investors. Rumble’s stock logged a notable single-day gain, with the move widely reported alongside news of Tether’s additional 1 million-share purchase. Beyond listed equities like Rumble, Tether has also pursued higher-profile transactions, including a reported bid for Italian football club Juventus that was ultimately rejected, as well as backing for a SPAC listing of a treasury-management vehicle, reinforcing its trajectory from stablecoin issuer to multi-asset capital allocator.

The broader implications of Tether’s capital strategy are significant: stablecoin issuers are providing capital-markets infrastructure, not just another payment option, and are becoming themselves significant financial institutions. Tokenization is shifting from experimentation to necessity, particularly for private companies facing liquidity constraints. Regulators are beginning to respond to this convergence between stablecoins and traditional finance; in the UK, the Bank of England has launched a consultation on a dedicated framework for regulating systemic stablecoins, signaling that instruments used at scale should be supervised in a manner comparable to other forms of private money. Bank of England Governor Andrew Bailey has similarly stated that widely used stablecoins must be regulated “like money,” underscoring that policymakers increasingly view stablecoins as part of the core financial system rather than a peripheral crypto innovation.

The significance of Tether’s $20 billion capital raise lies less in the fundraising itself and more in what it represents: the emergence of stablecoin issuers as potentially systemically relevant financial institutions. These dynamics highlight that as stablecoin issuers move deeper into capital formation and asset ownership, expectations around governance, disclosure, and risk management are likely to rise in parallel. In late 2025, S&P Global revised its stability assessment of USDT, citing concerns around disclosure and transparency relative to peers.