Stablecoin Giant Tether Seeks $500 Billion Valuation – What Challenges Lie Ahead?_blog

25 Sep, 2025

Stablecoin Giant Tether Seeks $500 Billion Valuation – What Challenges Lie Ahead?

Tether, the world’s largest stablecoin issuer, is considering raising $15–20 billion through a private placement, equivalent to about 3% of the company’s equity. According to a Bloomberg report on Wednesday (September 24), citing two people familiar with the matter, such a deal could value Tether at a level comparable to OpenAI.

Shortly after the report, Tether CEO Paolo Ardoino confirmed the news on his official X account, stating that the company is “evaluating raising capital from a group of high-profile strategic investors.” He added that the funding would “multiply the scale” of Tether’s existing and new business lines, including stablecoins, distribution and adoption, artificial intelligence, commodities, energy, communications, and media.

The financing is expected to take place through the issuance of new shares, without any existing shareholder divestment. Negotiations remain at an early stage, and details such as the exact fundraising amount could still change.

Based on a $20 billion raise for 3% equity, Tether’s valuation would approach $500 billion—an unprecedented milestone for a crypto industry company. This would place the company’s valuation on par with global private-sector leaders like SpaceX and OpenAI. Earlier this year, OpenAI was valued at around $300 billion in a separate fundraising round.

Tether, once accused of being the “preferred cryptocurrency for criminals,” has been working toward re-establishing its U.S. presence amid former President Trump’s favorable stance toward the crypto industry. Earlier this month, Tether appointed Bo Hines as CEO of its U.S. operations. Hines, a key architect of crypto policy under the Trump administration, helped advance the GENIUS Act. Tether has also set up USAT, a U.S.-focused subsidiary that will operate under the GENIUS Act regulatory framework.

Meanwhile, the market capitalization of Tether’s USDT stablecoin has recently surpassed $172 billion, far outpacing its competitors. Circle, the issuer of USDC, holds second place with a market cap of about $74 billion. However, a dominant lead does not mean Tether can rest easy.

Tether’s Market Leadership Conceals Underlying Risks

A recent JPMorgan research report pointed out that the U.S. stablecoin market may be entering a “zero-sum game,” where new issuance merely redistributes market share rather than expanding the total market. According to the report, the stablecoin sector’s overall market capitalization stands at around $278 billion, with its share of the broader crypto market remaining below 8% since 2020.

Despite this limited growth, new competitors continue to emerge. In addition to Circle, firms such as PayPal, Robinhood, and Hyperliquid are actively deploying diversified strategies to capture market share and challenge Tether’s dominance.

Circle: Building an Ecosystem and Strengthening Compliance

Following the passage of the GENIUS Act, Circle has enhanced transparency and compliance measures to attract institutional clients. It is also developing the Arc blockchain to improve USDC’s liquidity and scalability, further bolstering its competitive edge in the stablecoin sector.

PayPal: Leveraging Traditional Finance to Drive Stablecoin Adoption

In 2023, PayPal launched its stablecoin PayPal USD (PYUSD) in partnership with Paxos Trust Company, ensuring transparent 1:1 dollar reserves. PYUSD is already available on Ethereum and Solana, with plans to expand to TRON, Avalanche, and Sei, enhancing its utility in global payments. PayPal also incentivizes adoption through reward programs, further growing its market share.

Hyperliquid: Introducing USDH to Challenge Market Leaders

In September, Hyperliquid launched the USDH stablecoin, achieving over $2.2 million in early trading volume. Positioned within DeFi, USDH is designed to integrate with Hyperliquid’s native token economy to enhance liquidity and influence. Strategic partnerships with decentralized exchanges are expanding its use cases.

Robinhood: Integrating Stablecoins to Boost Transaction Efficiency

Robinhood is exploring the launch of its own stablecoin to improve trading efficiency and user experience. Stablecoin integration would enable 24/7 settlement, enhance capital utilization, and lower transaction costs. Robinhood’s acquisition of Bitstamp also extends its footprint in crypto markets, laying the groundwork for a potential stablecoin rollout.

Tether’s Internal Challenges

Beyond external competition, Tether faces significant internal challenges:

1. Reserve Transparency

Tether has long been criticized for insufficient transparency. While the company claims USDT is fully backed by reserves, it only publishes quarterly attestations rather than continuous third-party audits. Market doubts remain about the composition and liquidity of its reserves.

2. Complex and Risky Asset Structure

Tether’s reserves include not only U.S. dollars and Treasuries but also Bitcoin, gold, and other volatile assets. Although diversification may enhance returns, it also exposes the company to valuation risks and liquidity stress during market downturns.

3. Governance and Compliance Gaps

To meet regulatory demands under frameworks such as the GENIUS Act, Tether needs stricter financial management, auditing, and risk control. Its current governance structures and processes lack full transparency and standardization, which could expose vulnerabilities during compliance reviews or crises.

4. Operational Complexity from Diversification

Tether’s recent forays into AI, energy, and commodities may support long-term strategy but risk diluting management focus. This could place additional strain on its core stablecoin operations and risk management capabilities.

Conclusion

Tether’s planned private placement could push its valuation toward $500 billion, marking a historic milestone in the crypto industry. However, its dominance is not without risk. The company still faces challenges related to reserve transparency, complex asset allocation, governance and compliance weaknesses, and operational pressure from diversification.

Meanwhile, competitors including Circle, PayPal, Hyperliquid, and Robinhood are leveraging compliance, innovation, and strategic expansion to capture market share.

Whether Tether can retain its crown will ultimately depend on its ability to strengthen governance and adapt to tightening regulatory landscapes.

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29 Sep, 2025

Laos Economy Inches Forward as Inflation Eases in September, Exports Keep Rolling

The cost of living in Laos is still rising, but not as fast as before. New data from the Lao Statistics Bureau shows that prices across the country grew by 4.5 percent  in September compared to the same month last year. This is a small improvement from August, when prices had increased by 5 percent. This change means that while things are still getting more expensive, they’re not rising as quickly as they were a few months ago, a welcome sign for families and businesses who have been struggling with rising costs.To track inflation, experts use something called the Consumer Price Index or CPI. This index is like a shopping basket that includes the prices of many common items people buy regularly. In September, the CPI in Laos was 256.9, meaning prices were almost 11 points higher than in the same month last year. That’s an increase, but it’s slower than what we saw earlier in the year.So far this year, from January to September, prices in Laos have gone up by an average of 8.8 percent.By category, housing, water, electricity, and cooking fuel recorded the highest annual increase at 14.8 percent. Prices for other goods and services rose by 18.2 percent, followed by healthcare and medicine at 12.9 percent.Education increased by 9.7 percent, household goods and clothing and footwear by 7.3 percent each, and alcohol and tobacco by 7 percent. Restaurants and hotels climbed 6.4 percent, recreation and leisure by 4.9 percent, while communication and transportation rose by 3.3 percent. Food and non-alcoholic beverages were up 1.9 percent.Economic Growth and OutlookAt a recent government meeting in August, officials said that Laos has earned about LAK 47,000 billion (roughly USD 2.16 billion) so far this year. That’s 69 percent of what the government hopes to earn in 2025, which is considered on track.Agricultural exports continued to support the national economy, with crop and vegetable exports reaching nearly 325,000 tons, valued at over USD 88 million. Livestock exports also contributed another USD 1.16 million, reinforcing the sector’s importance for foreign exchange earnings.Yet, while inflation in Laos is easing, growth in the next months is expected to be slow. The World Bank, Asia Development Bank, and the ASEAN+3 Macroeconomic Research Office forecast  between 3.5 and 4.4 percent growth, mentioning challenges such as high public debt, inflation, currency changes, and financing pressures. The country’s public debt currently stands at 116 percent of GDP, according to a World Bank report.

24 Sep, 2025

ING, UniCredit and Seven Other European Banks to Jointly Develop Euro Stablecoin

Nine European banks have formed a consortium to develop a euro-based stablecoin, aiming to establish it as a "trusted European payment standard," the banks announced.The participating lenders — UniCredit, ING, Banca Sella, KBC, Danske Bank, DekaBank, SEB, CaixaBank, and Raiffeisen Bank International — have established a new company in the Netherlands to manage the project. The venture plans to seek the necessary licenses under the supervision of the Dutch Central Bank, according to a Thursday press release from ING.The stablecoin is set to be regulated under the EU's Markets in Crypto-Assets Regulation (MiCA), with a target launch in the second half of 2026."The initiative will provide a real European alternative to the US-dominated stablecoin market, contributing to Europe's strategic autonomy in payments," said the banks. "Individual banks will be able to provide value added services, such as a stablecoin wallet and custody."MiCA, which came into full effect at the end of last year, establishes comprehensive guidelines and regulations for crypto assets across the European Union trading bloc. MiCA primarily regulates crypto asset issuers and service providers.Stablecoins have seen growing momentum as the U.S. adopts a more supportive approach to crypto assets under the Trump administration. The total USD-pegged stablecoin supply reached 281.7 billion as of Thursday, up from 272.3 billion at the beginning of this month.The total euro stablecoin supply on Ethereum stood at 319.1 million as of Wednesday, compared to 309.4 million at the start of this month.