Ark Invest, SoftBank Eye Tether Stake Amidst $500B Valuation Talks
- Tether Holdings Limited aims for a $500 billion valuation.
- Ark Invest and SoftBank engage in preliminary stake discussions.
- Stablecoin market dynamics could be reshaped significantly.
Ark Invest and SoftBank are considering a stake in Tether Holdings as it seeks a $500 billion valuation, aiming to reshape stablecoin markets, discussions are in preliminary stages.
This potential investment could considerably influence stablecoin market dynamics, impacting liquidity and competitive relationships, particularly between Tether’s USDT and Circle’s USDC.
Tether Holdings Limited, the issuer of USDT, is seeking a $500 billion valuation through funding efforts. The company targets $15 billion to $20 billion in exchange for about a 3% stake.
Cathie Wood’s Ark Invest and SoftBank Group are engaged in preliminary discussions to acquire a stake. Cantor Fitzgerald acts as the investment advisor for this round, guiding discussions between Ark Invest and SoftBank.
Potential effects on the stablecoin market could be considerable, potentially reshaping dynamics as Tether targets its valuation goals. If successful, this could position Tether as one of the top five most valuable privately held firms globally.
Financial implications are substantial as an increased valuation could bolster Tether’s global dominance. Moreover, involvement from high-profile investors such as Ark Invest reflects confidence in Tether’s market position and growth potential.
Previous investment instances from Ark Invest, like backing rival Circle, suggest a strategic interest in stablecoins. Ongoing discussions between key financial players could introduce competitive shifts affecting other stablecoin issuers.
Future outcomes could include heightened regulatory interactions given Tether’s expansion plans. Historical trends show large-scale funding can influence technological and financial landscapes. Maintaining top-tier status may cause increased scrutiny from regulators.
Paolo Ardoino, CEO, Tether Holdings Limited, “Tether seeks to raise $15 billion to $20 billion in exchange for approximately a 3% company stake, elevating its potential valuation to $500 billion.”
