According to Bloomberg, tech-focused investment firm Softbank and Ark Invest is one of the early companies to invest in Tether, the publisher of the world’s largest Stablecoin USDT (USDT).
The report follows news this week that Tether is about to raise up to $20 billion in a fundraising round that values roughly $500 billion, making it one of the most valuable private companies in the world.
Funding and heavy valuations highlight the red-hot stubcoin trend, a rapidly growing crypto sector with the potential to disrupt global payment flows. Stablecoins are a class of cryptocurrencies with prices tied to fiat money, like the US dollar, and supporters say they can offer cheaper and faster alternatives to cross-border transactions using blockchain rails. The sector has grown to $287 billion, up 40% since the start of the year, data from RWA.xyz shows, with Stubcoin analysts at Global Bank City Project reaching a market value of $4 trillion in a bull market scenario.
Tether’s USDT is a market leader with a market capitalization of $173 billion, backed primarily by the US Treasury Department, and has provided profitable windfalls from bond yields over the past few years. The company reported profits of $4.9 billion in the second quarter of this year.
Circle (CRCL), the publisher of the second-largest Stablecoin USDC, went above $70 billion and was published in June, highlighting investors’ appetites as its stock price surged from $30 to $300, exposing its Stablecoin theme.
Focusing on serving emerging markets with limited US dollar access, Tether announced earlier this month with the intention of officially entering the US market, designed to meet the requirements of the country’s first federal cryptographic law, which sets stable rules. He also poached former director of the White House Crypto Council, Bo Hines, who advises President Donald Trump on crypto policy, and led the US division.
Read more: Stablecoin Market could reach $4 trillion by 2030, City says in revised forecast
