TL;DR
- Tether scaled back a $15,000–$20,000 million funding plan after doubts emerged around a valuation close to $500,000 million.
- Advisers are now assessing a round of roughly $5,000 million, aligned with the current appetite of the crypto market.
- Paolo Ardoino clarified that the $15,000–$20,000 million range stemmed from a misunderstanding rather than a formal target set by Tether.
Tether significantly scaled back a funding plan that initially circulated in the market within a range of $15,000 million to $20,000 million. Preliminary discussions linked that amount to a valuation close to $500,000 million, a figure that triggered immediate questions from institutional investors and financial advisers.
According to information cited by the Financial Times, the original proposal raised doubts about the viability of the transaction in the current crypto market environment. Following those objections, the company’s advisers began evaluating a much smaller round, closer to $5,000 million, aligned with actual market interest.
Paolo Ardoino, Tether’s CEO, stated that the $15,000 to $20,000 million range did not represent a formal objective of the company, but rather an erroneous interpretation that arose during preliminary exchanges with market participants. His clarification became public after the figure gained traction and sparked widespread debate over the implied valuation.
Tether Is Always Under Scrutiny
The industry is showing increased demands on stablecoin issuers. Institutional investors now prioritize clear capital structures, revenue visibility, and defined governance standards. Companies tied to the core infrastructure of the market face a higher-than-usual level of scrutiny.
Tether plays a central role in the liquidity of the crypto ecosystem. USDT supports a significant share of global trading volume and serves as a reference asset across multiple markets and platforms. For that reason, any change in its capital strategy has a direct impact on perceptions within the stablecoin market.
Strengthening Reserves and Operational Capacity
The company has long remained under the scrutiny of regulators and analysts due to the composition and transparency of the reserves backing the issuance of USDT, even as Tether publishes periodic reports and partial audits.
The $5,000 million round aims to strengthen reserves and operational capacity without creating broad dilution or a financing structure that is difficult to execute. The figure aligns with recent transactions in the market and with the level of risk investors are willing to assume in the current market cycle
