Tether at $500 billion would outsize Bank of America — but one depeg can jolt crypto 39x faster

Hello,Hive User, I hope you are all well. Today I got some exciting (or a bit shocking) news that I would like to share with you. As you all know, I always try to keep you upbeat and excited.

On Sep. 24, Bloomberg reported that Tether Holdings, the issuer of the Tether Tether

Tether stablecoin, is in early talks to raise between $15 billion and $20 billion through a private placement. The sale would represent about 3% of the company’s equity.

At those terms, the deal would imply a valuation near $500 billion, putting Tether in the same tier as global private giants such as OpenAI and Elon Musk’s SpaceX. Cantor Fitzgerald has been named as lead adviser on the discussions.

Alongside the fundraising, Tether is laying groundwork for a deeper U.S. presence. In September, the company unveiled USAT, a stablecoin designed to meet American regulatory standards and aimed specifically at U.S. residents.

To lead the initiative, Tether hired Bo Hines, a former White House digital assets adviser, and partnered with Anchorage Digital Bank to issue USAT under federal oversight.

The token’s reserves are expected to follow requirements set out in the GENIUS Act, which recently established federal rules for stablecoin issuers.

Meanwhile, Tether’s core product continues to grow. The circulating supply of USDT is estimated at $173 billion, making it the largest stablecoin by far.

Taken together, the fundraising ambitions, a U.S. compliant coin, and Tether’s entrenched global dominance raises a larger question: what happens if a private stablecoin issuer is valued at half a trillion dollars?

Tether’s Fundraising and a New U.S. Stablecoin

Bloomberg recently reported that Tether is in talks to raise between $15–20 billion through a private placement. If successful, that deal would give the company a valuation close to half a trillion dollars. Cantor Fitzgerald has been named as lead adviser for the process.

At the same time, Tether is preparing for a deeper push into the U.S. market. The company recently introduced USAT, a stablecoin designed to comply with American regulations. Unlike USDT, which dominates globally, USAT is meant specifically for U.S. users and is being issued in partnership with Anchorage Digital Bank. The project will follow reserve requirements set by the GENIUS Act, which was passed earlier this year to regulate stablecoin issuers.

The Bigger Question: What Happens If Tether Slips?

At a valuation of half a trillion dollars, Tether wouldn’t just be another big company—it would be a systemically important financial player. That’s where concerns arise.

A recent study found that a single USDT depeg event could amplify crypto market volatility 39 times over, sending shockwaves across the entire digital asset space.

So while Tether’s rise is a story of growth and innovation, it’s also a reminder of the risks tied to one company holding so much power in a still-maturing industry.

Final Thoughts

Tether’s journey from a controversial stablecoin issuer to a financial powerhouse is remarkable. But with scale comes responsibility—and scrutiny.

If the company does hit a $500 billion valuation, it won’t just be a crypto story anymore. It will be a global finance story, one that could reshape how stablecoins, governments, and markets interact. The question isn’t just whether Tether can keep growing—it’s whether the system can handle it if something goes wrong.