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SoftBank and ARK Invest Explore Strategic Stake in Tether, Valuing the Stablecoin Issuer at $500 Billion
SoftBank Group and ARK Invest are reportedly in talks to acquire a stake in Tether, the company behind the world’s largest stablecoin, USDT. If confirmed, this deal could elevate Tether’s valuation to a staggering $500 billion, underscoring its prominence in the global financial ecosystem.
According to Bloomberg’s report on October 26, Tether is considering selling approximately 3% of its equity. The proposed investment round could involve SoftBank and ARK Invest contributing up to $20 billion collectively. This potential capital influx highlights Tether’s position as one of the world’s most profitable and influential companies.
Paolo Ardoino, CEO of Tether, acknowledged ongoing discussions with major investors regarding this fundraising initiative. While he chose not to disclose specific names or investment particulars, Ardoino hinted at Tether's growing ambitions to branch out into diverse sectors such as commodities, energy, and media.
USDT: The Backbone of Tether’s Market Dominance
Tether’s remarkable success has been shaped by its flagship stablecoin, USDT, which is pegged to the U.S. dollar. With a current market capitalization of $173.6 billion, USDT holds the crown as the world’s largest stablecoin and an integral part of the cryptocurrency market.
Tether has built its profitability on strategic investments, primarily through U.S. short-term Treasuries and Bitcoin (BTC). In Q2 2025, the firm reported a net profit of $4.9 billion—a jaw-dropping 277% year-on-year surge. This lucrative financial performance is largely attributed to skyrocketing interest rates on short-term Treasuries.
However, as these interest rates peak and begin their inevitable decline, Tether faces a pivotal challenge. Analysts speculate that the firm may need to reduce its dependence on interest income and prioritize business diversification to sustain its profitability and market dominance.
Expanding Horizons: Tether’s Ventures Beyond Crypto
Recognizing the importance of diversification, Tether is already making bold moves into new industries to strengthen its long-term position. Infrastructure, energy, and media have emerged as key focal points for the company’s strategic growth.
In 2024, Tether marked its entry into the venture capital domain with an investment in Arcanum Capital, signaling its intent to venture beyond traditional cryptocurrency operations. This expansion aligns with Tether’s mission to broaden its revenue streams and protect its profitability against fluctuating financial conditions.
Industry experts emphasize that while Tether enjoys unparalleled profitability and market leadership through its dominance in stablecoins, its future hinges on the successful implementation of these diversification efforts.
“Tether has solidified its position as a global powerhouse in stablecoin markets and profitability,” reads an industry analysis. “The key to sustainable growth lies in its ability to effectively branch out into these emerging sectors and affirm its place as a versatile player on the global stage.”
Conclusion: Tether’s Balancing Act
Tether’s meteoric rise has placed it at the forefront of innovation in cryptocurrency and finance. With market giants SoftBank and ARK Invest potentially endorsing its trajectory, the company stands on the brink of a transformative moment.
While its dominance through the USDT stablecoin and profitability from strategic investments remains unmatched, navigating declining interest rates and prospects for diversification will be critical for Tether’s sustained growth. Successfully branching into energy, infrastructure, and media sectors could redefine Tether’s role in the broader financial ecosystem, ensuring that its valuation and influence continue to soar in the years ahead.
