Is Tether IPO Just A Pipe Dream?

Tether, issuer of the $185 billion USDT stablecoin, has dramatically scaled back its private fundraising ambitions.

It raises doubts about a potential IPO once fueled by speculation from crypto insiders like BitMEX co-founder Arthur Hayes.

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Investor Pushback Forces Tether to Reassess Funding Ambitions

Tether was initially exploring a $15–20 billion raise at a $500 billion valuation. The figure would have placed the stablecoin issuer among the world’s most valuable private firms.

However, according to the Financial Times, Tether is now considering as little as $5 billion, or potentially no raise at all.

The latest pullback follows a year of heightened market chatter. In September 2025, Hayes reignited Tether IPO speculation, suggesting a public listing for the stablecoin issuer could overshadow Circle’s successful USDC debut.

At the time, Tether’s valuation was pegged at over $500 billion. This positioned it alongside tech and finance giants such as SpaceX, OpenAI, and ByteDance.

Hayes framed the potential listing as a strategic move, with Tether’s USDT circulation of $185 billion and its revenue-generating structure giving it a competitive edge over Circle.

Yet investor sentiment has tempered the hype. Backers reportedly balked at the lofty $500 billion valuation, citing:

• Regulatory scrutiny
• Reserve transparency concerns, and
• Past allegations of illicit use.

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Tether Stays Profitable Amid Market Headwinds, Keeping IPO Optional

A recent S&P Global Ratings downgrade highlighted Tether’s exposure to riskier assets, such as Bitcoin and gold, further heightening caution.

“S&P said there had been an increase in high-risk assets in Tether’s reserves over the past year, including bitcoin, gold, secured loans, corporate bonds, and other investments, all with limited disclosures and subject to credit, market, interest-rate, and foreign-exchange risks. Tether continues to provide limited information on the creditworthiness of its custodians, counterparties, or bank account providers,” Reuters reported, citing S&P.

The broader crypto market’s decline over the past six months further dampened enthusiasm for sky-high valuations, even for the sector’s most profitable player.

Ardoino, however, remains confident in Tether’s fundamentals. He described the $15–20 billion figure as a misconception. According to Ardoino, the company would be “very happy” raising zero capital.

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“That number is not our goal. It’s our maximum, we were ready to sell…If we were selling zero, we would be very happy as well,” read an excerpt in the report, citing Ardoino.

Tether reported $10 billion in profits for 2025, down about 23% from the prior year due to Bitcoin price declines but offset by strong returns on gold holdings.

With profitability firmly intact, Tether has little operational need for additional funds. This suggests the fundraising drive is as much about credibility and strategic partnerships as it is about cash.

Tether IPO: Just a Pipe Dream?

The retreat also reshapes expectations for the Tether IPO. While a public listing is no longer imminent, regulatory tailwinds and strategic initiatives keep the option alive.

US stablecoin legislation under President Trump, along with Tether’s new US-compliant USAT token, could provide a pathway for legitimacy in the domestic market.

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Therefore, groundwork could be laid for a potential 2026 IPO if market conditions improve, though the valuation may need to be recalibrated.

Still, Tether’s cautious pivot carries a broader signal for the crypto ecosystem. As the market’s de facto reserve currency with massive Treasury and gold holdings, the company’s retreat highlights a growing emphasis on profitability and transparency over hype.

For other high-valuation crypto firms eyeing public markets, Tether’s experience may serve as a blueprint: sustainable growth and strong fundamentals are increasingly critical to investor confidence, even for marquee names in the industry.

It is also worth noting that Tether CEO Paolo Arodino once articulated that the firm does not need to go public. However, he did not rule it out either.