Tech-focused investment companies Softbank and Ark Invest are among the companies in early stages to invest in Tether, issuer of the world’s largest stableecoin USDT (USDT), reported Bloomberg on Friday.
The report follows this week’s news about Tether, who wants to raise up to $ 20 billion in a fundraising round that would appreciate the company at around $ 500 billion, which would make it one of the world’s most valuable private companies.
Fundraising and the fierce valuation emphasize the red-hot stableecoin trend, a rapidly growing crypto sector with the potential to disrupt the global payment streams. Stableecoins are a class of cryptocurrencies with prices linked to Fiat money like the US dollar, and can offer a cheaper, faster alternative to cross-border transactions using blockchain rails, advocates say. The sector has grown 40% years to date to $ 287 billion, rwa.xyz data shows, and analysts at Global Bank Citi Project StableCecoins hit $ 4 trillion in market value in its Bull Market scenario.
Tether’s USDT is the market leader with a market value of $ 173 billion, predominantly supported by US Treasurers, which has made a profit of profits from bond yields in recent years. The company reported $ 4.9 billion in profits in the second quarter of this year.
Circle (CRCL), issuer of the second largest stableecoin USDC of over $ 70 billion, was published in June and saw its share price skyrocket to $ 300 from about $ 30, emphasizing the investor’s appetite to get exposure to the stableecoin theme.
Tether, who has focused on serving new markets with limited US dollar access, announced earlier this month that it is formally entering the US market with a dollar token called USAT designed to meet the requirements of the Genius Act, the nation’s first federal crypto legislation containing rules for stableecoins. It also spent Bo Hines, former Director of the White House Crypto Council, who advised President Donald Trump about cryptopolics, to lead his US division.
Read more: StableCOin market could reach $ 4 trillion by 2030, says Citi in revised forecast
