Tether’s $20bn raise ‘resets expectations’ for stablecoin sector

Core Insights - Tether is in discussions to raise $20 billion from investors, which would value the company at $500 billion, significantly impacting the stablecoin industry [1] - The valuation positions Tether alongside major companies like OpenAI and SpaceX, while its USDT token leads the market with over $172 billion in circulation [2] - Tether plans to launch a new stablecoin, USAT, for the US market by the end of the year, and has reported substantial profits from its investments in US Treasuries [3] Industry Overview - The stablecoin market is rapidly evolving, with predictions suggesting it could grow into a $2 trillion market, driven by recent US legislation and a favorable crypto policy environment [5] - Investment in stablecoin startups surged, with $537 million raised in 2025, indicating the increasing importance of stablecoins in the crypto economy [6] - Tether's recent profits have raised questions about the timing of its capital raise, particularly in light of anticipated interest rate cuts [4]