Tether scraps $20B funding plan after investor pushback, FT reports

Tether, the issuer of the world's largest stablecoin USDT, has abandoned its plan to raise up to $20 billion and is now targeting a significantly smaller amount, the Financial Times reported. The initial plan, which would have valued the company at $500 billion, reportedly collapsed after facing opposition from potential investors. According to the report, investors expressed concerns over the risks of such a large-scale fundraising, citing regulatory and trust uncertainties surrounding the stablecoin business model, as well as questions about Tether's capital structure and risk exposure. The company is now said to be in discussions with investors for a reduced funding round of around $5 billion. In response, Paolo Ardoino stated that the direction of the investment round is being adjusted to align with investors and market conditions, adding that Tether's financial position is strong enough to proceed without any investment. Tether previously announced in an earnings report that it had recorded a profit of over $10 billion last year.