Tether in talks for $15-20B private equity raise valuing near $500B

Tether Holdings is in early-stage talks to raise between $15 billion and $20 billion in new equity, a move that could value the El Salvador based stablecoin issuer at roughly $500 billion and make it one of the most valuable private companies in the world, people familiar with the discussions said. The proposed private placement would amount to about a 3 percent stake and, if completed on top-end terms, would mark one of the largest capital raises in the cryptocurrency sector.

According to the people, who were not authorized to speak publicly, Cantor Fitzgerald is acting as lead adviser and prospective investors have been given access to a data room to evaluate the opportunity. The transaction would involve new shares rather than existing holders selling stakes. Some parties cautioned the $15 billion to $20 billion figures represent top-end targets and that final terms could be significantly lower or change as talks progress. Industry sources expect the deal could close by year end if it moves forward.

Reports said a number of high profile investors, including SoftBank Group and Ark Investment Management, are in early discussions about participating. Tether’s chief executive,...