Softbank, Cathie Wood's Ark Among Potential Investors in Tether Fundraising: Report

Core Insights - SoftBank and Ark Invest are in early discussions to invest in Tether, which is looking to raise up to $20 billion, potentially valuing the company at around $500 billion, making it one of the most valuable private companies globally [1][2] Industry Overview - The stablecoin sector is experiencing rapid growth, with a 40% increase year-to-date, reaching a market value of $287 billion, and projections from Citi suggest it could hit $4 trillion in a bullish scenario [2][6] - Stablecoins, which are cryptocurrencies pegged to fiat currencies like the U.S. dollar, are seen as a cheaper and faster alternative for cross-border transactions [2] Company Performance - Tether's USDT leads the market with a market capitalization of $173 billion, primarily backed by U.S. Treasuries, resulting in $4.9 billion in profits reported in Q2 of this year [3] - Circle, the issuer of the second-largest stablecoin USDC, went public in June, with its stock price soaring from $30 to $300, indicating strong investor interest in the stablecoin market [4] Strategic Developments - Tether plans to enter the U.S. market with a new dollar token, USAT, compliant with the GENIUS Act, the first federal law governing stablecoins, and has appointed Bo Hines to lead its U.S. division [5]