Tether has scaled back plans for a major private fundraising round after investor resistance to a $500 billion valuation, raising fresh doubts over whether an IPO is imminent.
The stablecoin issuer had explored raising $15–20 billion but is now considering as little as $5 billion or no capital raise at all, according to reporting by the Financial Times.
“That number is not our goal, it’s our maximum, we were ready to sell… If we were selling zero, we would be very happy as well,”
Chief executive Paolo Ardoino said, according to the report.
The retreat follows renewed speculation last year from figures such as BitMEX co-founder Arthur Hayes, who argued a Tether IPO could dwarf Circle’s listing given USDT’s $185 billion circulation.
Investor caution has centred on regulatory scrutiny, reserve transparency concerns and past allegations of illicit use, alongside a recent S&P Global Ratings downgrade highlighting exposure to higher-risk assets.
Despite that, Tether remains highly profitable, reporting about $10 billion in earnings for 2025, with returns on gold offsetting weaker Bitcoin prices.
While a near-term IPO now appears unlikely, analysts say clearer US stablecoin regulation could reopen the door in 2026, albeit at a more modest valuation than previously floated.
At the time of reporting, Bitcoin price was $76,349.51.