SoftBank, ARK Reportedly Consider Investing in Tether, Potentially Valuing USDT Issuer Near $500 Billion

• Reported investors: SoftBank and ARK considering a combined $20B investment

• Tether may sell ~3% equity, implying up to a $500B valuation if the round completes

• Tether reported $4.9B net income in Q2 2025; USDT market cap ~ $173.6B (sources: Bloomberg, company statements)

Tether investment: SoftBank and ARK eye a potential $20B stake in Tether, possible $500B valuation — read the latest analysis and implications.

SoftBank and ARK are reportedly weighing a major equity investment in Tether as the issuer explores strategic diversification beyond USDT.

At least two high-profile investment firms are reported to be in discussions to back Tether as it proposes selling roughly 3% of the company — a move that signals strong investor appetite for large stablecoin issuers.

Bloomberg reports that SoftBank Group and ARK Investment Management are among potential backers considering a combined commitment of up to $20 billion for Tether.

Tether CEO Paolo Ardoino has publicly confirmed the company is exploring a targeted fundraise “from a select group of high-profile key investors,” while not disclosing specific names or final amounts.

Source: Paolo Ardoino

What is the reported Tether investment by SoftBank and ARK?

The reported Tether investment involves SoftBank and ARK evaluating a combined capital injection of up to $20 billion for roughly 3% of the company, which would imply a valuation near $500 billion if completed. Company statements and Bloomberg reporting frame this as exploratory discussions rather than finalized deals.

How could a $20 billion investment value Tether at $500 billion?

Valuation math is straightforward: a $20 billion purchase for ~3% equity equates to an implied enterprise value of about $666 billion, but press estimates round to a $500 billion headline figure based on deal structure and preferred terms. The figure underscores investor interest in Tether’s cash flow profile and reserve-backed model.

Key financial context: Tether reported $4.9 billion in net income in Q2 2025, a 277% year-over-year increase. USDT remains the largest stablecoin, with a market cap near $173.6 billion (company filings and market data).

USDT’s circulating supply continues to climb steadily. Source: DefiLlama

Why are investors attracted to Tether now?

Investors are drawn to Tether for its scale, predictable reserve income, and expanding business plans. Elevated short-term Treasury yields since 2022 materially increased Tether’s interest income, while diversified revenue streams — including secured lending and new strategic ventures — improve long-term prospects.

Tether’s reserve strategy centers on short-duration US Treasurys and other liquid assets, enabling sizable interest income while preserving liquidity. The combination of large reserves and increasing crypto utility for USDT supports institutional interest.

The yield on the 3-month Treasury bill has surged since 2022. Source: CNBC

How has yield environment affected Tether’s profitability?

Higher federal funds rates pushed three-month Treasury yields sharply upward, boosting returns on Tether’s short-duration Treasury holdings and driving record profits. While yields have cooled from 2023–24 peaks, the era of elevated short rates materially improved Tether’s interest income and reported earnings.

Tether also holds a significant Bitcoin reserve exceeding 100,000 BTC and has pursued selective venture investments and infrastructure plans, diversifying beyond purely interest-driven income.

Tether’s Bitcoin holdings have eclipsed 100,000 BTC. Source: BitcoinTreasuries.NET

Frequently Asked Questions

Is the SoftBank and ARK investment in Tether confirmed?

As of publication, discussions are reported but not confirmed. Company leadership has acknowledged selective fundraising talks; Bloomberg coverage identifies potential interested parties. No binding agreements have been publicly disclosed.

What would a $500B valuation mean for the stablecoin market?

A valuation at that scale would formalize stablecoins as strategic financial companies with sizeable balance sheets and earnings power, likely accelerating institutional partnerships and regulatory scrutiny in global markets.

Key Takeaways

• Reported interest: SoftBank and ARK are cited as potential backers considering up to $20B for Tether.
• Valuation implication: A ~3% equity sale could imply headline valuations near $500B depending on deal structure.
• Strategic context: Elevated Treasury yields, reserve income, and diversification plans are core drivers behind investor interest.

Conclusion

Reports that SoftBank and ARK may pursue a joint investment in Tether highlight institutional demand for reserve-backed stablecoin firms. Tether’s recent profitability, reserve composition and expansion plans make it a distinct candidate for strategic investment. Watch for formal disclosures and regulatory updates as interested parties finalize terms.