Tether, the leading stablecoin issuer, is reportedly seeking to raise more funds from the public. The top-tier web3 company is reportedly seeking to raise between $15 billion and $20 billion on a total valuation of around $500 billion, according to people familiar with the matter.
Tether is ostensibly seeking to sell 3% of its stake to raise the funds. However, the final discussions of Tether’s fundraising have not yet been finalized, thus the deal is likely to be changed along the way.
Bloomberg noted that Cantor Fitzgerald is acting as the lead advisor to the Tether public fund raising.
Why is Tether Raising More Funds?
Tether is seeking to solidify its dominance in the Stablecoin market amid the mainstream adoption of digital assets. Furthermore, the United States has led other nations in enacting clear crypto regulations to enhance the mainstream adoption of digital assets.
Earlier this year, President Donald Trump signed the Genius Act, to help democratize the mainstream adoption of digital assets. Earlier on Tuesday, the Commodity Futures Trading Commission (CFTC) announced a new initiative to enable the use of stablecoins in traditional derivatives.
As such, the stablecoin issuer is well-positioned to gain more market share in the long term. Furthermore, Tether’s USDT has a total market cap of about $173 billion and a daily average traded volume of around $96 billion. Meanwhile, the stablecoins market has a net valuation of nearly $300 billion with experts predicting a parabolic growth for stablecoins to surpass $1 trillion in the long haul.