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Tether has cut back its Tether fundraising plan after advisers and potential backers challenged the pricing implied by earlier talks, the Financial Times reported. The stablecoin issuer has explored a smaller deal after investor skepticism intensified around a $500 billion valuation.
Paolo Ardoino, Tether’s Chief Executive Officer, said the previous figures reflected a misunderstanding. He said the larger number represented a maximum stake the company could sell, not a fixed target.
Advisers have discussed raising as little as $5 billion. This level would mark a sharp step down from prior discussions that referenced $15 billion to $20 billion.
The change reflects investor caution on valuation and deal size. A smaller raise can reduce execution risk and widen the pool of potential investors.
Tether has not committed to selling a fixed stake. Insiders have also shown reluctance to sell shares, which can limit transaction size.
Investor resistance has focused on whether a $500 billion valuation fits current market conditions. The valuation target triggered pushback during talks with potential investors.
Ardoino defended the valuation by comparing Tether’s profits with those of major artificial intelligence companies. Furthermore, Ardoino framed flexibility as a feature, not a retreat. He said Tether would remain satisfied even if it sold no equity.
Tether issues USDT, a US dollar-pegged stablecoin that traders use to move funds across crypto markets. According to data, about $187 billion of USDT tokens are in circulation.
That scale makes Tether’s capital strategy market-relevant. Any fundraising outcome can shape confidence in the stablecoin market and influence how investors price core crypto infrastructure.
Tether has also argued it does not need urgent external funding because it generates significant profit. The company expects profits to keep growing and reported more than $10 billion in net profit for 2025.
The funding debate did not start this week. Tether had explored a private funding round of $15 billion to $20 billion in September 2025, which could value the company at about $500 billion, with the figures still subject to negotiation.
The earlier report said the round could represent about a 3% ownership stake, though terms remained tentative. It also identified Cantor Fitzgerald as the lead adviser at the time.
Meanwhile, Tether has positioned itself as a key provider of dollar-linked liquidity in crypto markets. The company has also discussed plans to expand its US footprint, including work on a US-based stablecoin concept reported in 2025.
Also Read: Tether (USDT) vs Dai (DAI): Best Stablecoin to Buy in 2026
