Tether Scales Back on Planned $15B Fundraising: Report

Group 1 - Tether has reduced its funding round target from $15 billion to $20 billion to potentially as low as $5 billion due to investor pushback on its $500 billion valuation [1][2] - The company generated approximately $10 billion in profit last year, primarily from yield on reserves backing USDT, indicating strong profitability and no immediate need for capital [3][2] - Tether's balance sheet resembles that of a large financial institution, holding over $122 billion in direct US Treasuries and having total Treasury exposure exceeding $141 billion [4] Group 2 - Tether has launched USAT, a US-regulated stablecoin, which is fully compliant with new federal stablecoin regulations, differentiating it from USDT [6] - The launch of USAT positions Tether in direct competition with other stablecoins like Circle's USDC and new entrants from major financial institutions [7] - Tether is actively engaging with US policymakers and law enforcement, collaborating with nearly 300 law enforcement agencies across over 60 countries [7]