Tether Holdings SA said its plans to raise as much as US$20 billion are on pause while it awaits the results of its first full financial audit, a milestone described by the company as the biggest inaugural audit in financial markets. Prospective investors and bankers have pressed Tether for greater transparency around its finances throughout the fundraising process, according to people familiar with the matter. Some would-be backers remain prepared to back the firm even without the audit, one of the people said, asking not to be identified discussing non-public information.
Tether said on Tuesday that it has tapped one of the Big Four accounting firms to conduct the audit, but did not name the firm or offer a specific timeframe. The El Salvador-based company launched its fundraising late last year, with a goal to raise between US$15 billion and US$20 billion at a US$500 billion valuation, Bloomberg News previously reported. The deal would have made Tether one of the most highly valued private companies globally, but the process, which was originally expected to wrap by the end of 2025, has faced multiple delays. A spokesperson for Tether did not respond to multiple requests for comment about the fundraising being on pause while the audit is being conducted.
Tether has said it wants to attract “strategic” investors for the share sale. It has been working with a number of banks on the raise including Cantor Fitzgerald LP, the U.S. investment bank run by the children of Commerce Secretary Howard Lutnick. Cantor is a Tether investor and late last year a Lutnick family trust borrowed an undisclosed sum from the stablecoin company. Morgan Stanley, BTG Pactual and First Abu Dhabi Bank have also all advised on its fundraise, which could also include significant secondary share sales, the people said.
Tether is the world’s largest issuer of stablecoins, a type of cryptocurrency that typically pegs its value to traditional assets like the United States dollar. Tether’s USDT token — which is tied to the U.S. dollar — dominates the market with US$184 billion worth of them in circulation. The company said it posted US$10 billion in profit last year, a notable return for a firm of just 300 people. It has been using that money to fuel an investing spree across a wide range of sectors including artificial intelligence, commodities, media and energy. Indeed, the company’s strong cash position means it is not under pressure to raise funds.
While accounting firm BDO provides quarterly attestations to the assets backing USDT, Tether has for years been facing calls for greater transparency, including around the company’s governance and corporate structure. Tether chief executive Paolo Ardoino had said in an interview earlier this year that securing a formal audit was a “super high priority.” The Big Four Firm was selected through a competitive process because the organization is already operating at Big Four audit standard, and the audit will be delivered.
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