Tether has revised its fundraising ambitions downward following investor resistance to its proposed $500 billion valuation. The firm, which reported approximately $10 billion in profit last year, has over $141 billion in U.S. Treasury exposure backing its dominant USDT stablecoin. Concurrently, Tether is expanding its U.S. presence with the launch of a new federally regulated stablecoin called USAT.
Tether has lowered its initial fundraising targets after investors pushed back on the firm’s $500 billion valuation. According to an FT report, advisors stated the adjustment responded to valuation concerns, not financial need. The company had previously targeted raising between $15 billion and $20 billion from the round. It is now considering a smaller capital increase, potentially as low as $5 billion.
The stablecoin issuer remains highly profitable, earning roughly $10 billion last year primarily from reserves backing USDT. Its latest attestation shows its balance sheet includes over $122 billion in direct U.S. Treasury holdings. When including short-term lending agreements, its total Treasury exposure surpasses $141 billion. The firm also expanded its gold reserves by 27 metric tons in late 2025.
Fundraising discussions remain flexible, with management indicating no urgency to finalize a deal. This strategic reassessment coincides with Tether introducing USAT, a U.S.-regulated stablecoin issued by Anchorage Digital Bank. The new product places Tether in direct competition with other regulated offerings like Circle’s USDC. The launch strengthens its position as it engages with global law enforcement agencies across over 60 countries.
