Why did Tether scale back its $20 billion funding plan?

Tether scaled back its funding plans after investors pushed back on the high $500 billion valuation target and expressed reluctance to sell equity at that price, leading advisers to consider a raise nearer to $5 billion.

What is USDT and why does Tether matter?

USDT is the most widely used stablecoin in the cryptocurrency market, pegged to the U.S. dollar and used for trading, payments, and liquidity. Tether’s large USDT circulation of about $187 billion highlights its central role in crypto markets.

How does this funding change affect the cryptocurrency market?

The funding change shows that even large crypto firms face investor scrutiny on valuation and fundraising strategy, which may lead to more disciplined capital raises and an industry focus on sustainability and profitability rather than headline valuations.

Crypto Insights

Tether Backs Off $20 Billion Funding Ambitions After Investor Pushback, FT Reports

ByAmna Habib February 4, 2026February 4, 2026

Tether, the issuer of the widely used USDT stablecoin in the cryptocurrency world, has scaled back its ambitious funding plans after major investor pushback, according to a Financial Times report. The company’s decision reflects a growing debate in the digital asset ecosystem about high valuations, investor confidence, and the challenges of raising capital in a complex regulatory landscape.