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- SoftBank and Ark Investment eye Tether’s multibillion-dollar funding round.
- Tether seeks up to $20 billion with major investors involved.
- SoftBank’s partnership strengthens ties with Tether’s crypto ambitions.
U.S. regulators are investigating unusual stock trading patterns that occurred before digital asset treasury companies (DATs) revealed plans to buy cryptocurrency. SoftBank and Ark Investment Eye Potential Tether Investment in Multibillion-Dollar Fundraising Round
According to Bloomberg, SoftBank and Cathie Wood, different investment strategies run by Ark Investment, are considering an opportunity to invest in a significant funding round in Tether, the largest issuer of stablecoins in the world. These two famous investors are reportedly not the only big names being discussed to inject money into Tether, which is soliciting funds to grow.
Tether, the producer of the USDT stablecoin, is also reportedly hoping to raise $20 billion in this round. Its valuation could be as high as half a trillion, making Tether one of the highest-valued private companies in the world, alongside big tech companies such as OpenAI and SpaceX.
The discussions are happening amid Tether steadily increasing its involvement in the cryptocurrency market. It is worth mentioning that recently the company declared its intention to release a USD-pegged stablecoin that will target the U.S. market. In spite of these developments, the CEO of Tether, Bo Hines, has stressed that the firm is not planning to raise funds in the near future. The participation of investors, like SoftBank and Ark Investment, is an indicator of a rising interest in the sphere of stablecoins and the leading position of Tether there.
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SoftBank and Tether: Strategic Partnerships in Crypto Investment
Besides the controversies of the Tether fundraising round, the relations between SoftBank and Tether’s parent company should be mentioned. SoftBank, together with Cantor Fitzgerald, are partners in the Bitcoin treasury company Twenty One Capital. The company initially valued at 3.6 billion Bitcoin is one of the biggest holders of the cryptocurrency in a publicly traded company.
This partnership also builds on the connections between SoftBank and Tether, which may be helpful for both sides as they seek to increase their presence in the digital asset market.
The powerful player in the stablecoin market is Tether, which has a current valuation of 173 billion USDT tokens. Though the company has been criticized in the past for the transparency of its reserves, it remains the market leader in terms of market capitalization. Potential capital inflow by SoftBank and Ark Investment would give Tether the financial resources to further cement its status as the most dominant issuer of stablecoins.
This crowdfunding initiative reflects Tether’s wider goals of diversification and making a tougher and harder-to-disparage mark in its market presence. Such high-profile investors indicate a strong belief in Tether’s business model and future growth in the fast-developing digital asset ecosystem.
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