Japanese conglomerate SoftBank and Cathie Wood’s Ark Investment are in preliminary discussions to participate in a significant funding round for Tether, according to Bloomberg.
Earlier, the agency reported that the issuer of the stablecoin USDT aims to raise $15-20 billion in exchange for a 3% stake through a private placement. Tether’s valuation could reach $500 billion, placing it among the world’s most valuable private companies alongside OpenAI and SpaceX.
Cantor Fitzgerald, previously led by former U.S. Commerce Secretary Howard Lutnick, is acting as the investment advisor. The firm also manages Tether’s assets.
SoftBank, known for its bold bets on technology, operates in telecommunications, finance, and marketing. The corporation is involved in developing data centers, autonomous vehicles, and semiconductors, and plans to invest $30 billion in OpenAI, with which it collaborates on the Stargate project.
Led by Cathie Wood, Ark Investment holds a stake in Tether’s main competitor, Circle. The company behind USDC went public on the New York Stock Exchange in June. Following the IPO, the firm raised $1.1 billion with a valuation of $6.9 billion.
As of writing, Circle’s market capitalization stands at $31.8 billion. The market supply of USDC reaches $73.7 billion. The dominant USDT exceeds $174 billion.
In September, Tether introduced a fully regulated “stablecoin” in the U.S., USAT.
Kraken to Boost Valuation to $20 Billion
Cryptocurrency exchange Kraken is in talks to raise funds that would increase the company’s valuation to $20 billion, Bloomberg reports from its sources.
According to Fortune, in preparation for a planned IPO, Kraken closed a $500 million investment round, bringing the platform’s valuation to $15 billion.
Sources told Bloomberg that the terms for the new funding have not been finalized. The strategic investor’s contribution is expected to be $200-300 million.
The exchange has also selected Morgan Stanley and Goldman Sachs to conduct the upcoming public offering.
In September, the Winklevoss twins’ cryptocurrency exchange Gemini went public on Nasdaq, raising $425 million in its IPO.