Karla Barker 
Tether’s Major Funding Pursuit
Tether Holdings is reportedly exploring a substantial $20 billion funding round that could value the company at approximately $500 billion. This would place the stablecoin issuer among the world’s most valuable private firms. The company aims to use this capital to diversify beyond its core stablecoin business, which currently supports a USDT supply exceeding $170 billion.
Cantor Fitzgerald, an existing shareholder in Tether, is advising on the potential transaction. Market observers suggest this move reflects Tether’s dominant position and growing institutional confidence in digital asset infrastructure. Major investment firms SoftBank and ARK Investment Management are said to be in talks to participate in the funding round.
Stablecoin Market Expansion
The stablecoin sector is experiencing explosive growth in 2025, driven by unprecedented institutional adoption and emerging regulatory clarity worldwide. According to analysis cited in Coinbase’s August report, the total market capitalization of stablecoins has surged to over $275 billion. Some analysts project the market could reach $1 trillion by 2028.
This growth is largely fueled by stablecoins’ utility in cross-border payments, which now account for over 43% of B2B transactions in Southeast Asia. A Fireblocks survey indicated that 90% of surveyed institutions are actively taking steps toward stablecoin integration, embracing them for treasury management and international settlement purposes.
Global Banking Participation
Beyond Tether’s ambitions, other major players are reshaping the stablecoin landscape. Nine major European banks including ING, UniCredit, and Danske Bank have joined forces to launch a MiCA-compliant euro-denominated stablecoin. Companies like Finastra have partnered with Circle to integrate stablecoins into bank payment flows.
The movement is gaining significant momentum in Asia as well. South Korea’s major financial institutions are deeply engaged in preparing for the stablecoin era, pursuing what they call a “Two-Track Strategy” involving both internal development and strategic partnerships. At least eight major banks, including KB Kookmin Bank and Shinhan Bank, are reportedly forming a consortium to create infrastructure for co-issuing a Won-backed stablecoin.
Financial Stability Concerns
However, the rapid expansion of stablecoins introduces systemic vulnerabilities that analysts are beginning to worry about. A new report from Moody’s Ratings warns that widespread stablecoin use could reduce central banks’ control over interest rates and currency stability, a trend they term “cryptoization.”
Banks may experience deposit erosion as savings shift into stablecoins or crypto wallets, and underregulated reserves could trigger liquidity runs requiring government intervention. The report notes that digital currency ownership has surged globally, reaching 562 million people by 2024, up 33% from the previous year.
Regulatory frameworks remain uneven across different regions. Advanced economies are beginning to regulate stablecoins more rigorously, with Europe implementing MiCA and the US passing the GENIUS Act, while Singapore applies a tiered framework. In contrast, many emerging markets lack comprehensive rules, with fewer than one-third of countries having full-spectrum regulation in place.
Tether’s financial performance has been strong, with the company posting $4.9 billion in net income in Q2 2025, up 277% from a year earlier. The company is supported by large US Treasury holdings and a growing Bitcoin reserve, making it one of the most profitable firms in the crypto space. But whether this profitability can be sustained amid growing regulatory scrutiny remains an open question that investors will need to consider carefully.