Tether Holdings, the issuer of the world’s largest stablecoin, aims to raise up to $20 billion in a private funding round to achieve a valuation of approximately $500 billion. The company, based in El Salvador, is negotiating to sell a 3% equity stake, positioning itself among the highest-valued private firms globally. Tether's USDT token plays a crucial role in global crypto trading, serving as a dollar-pegged asset for liquidity and settlements. Despite facing criticism over its reserve transparency, Tether has made strides in enhancing its portfolio, leaning towards short-term US Treasuries and independent audits. A valuation of $500 billion would significantly surpass peers like Coinbase, which has a market cap of about $50 billion. The timing of the funding coincides with increased regulatory scrutiny on stablecoins in both the US and Europe, which are pushing for tighter oversight. Recently, Tether announced the launch of a US-based stablecoin, USAT, under the leadership of former White House crypto official Bo Hines. Additionally, Tether's role in the financial markets is expanding beyond crypto, signifying its growing impact in dollar funding markets.

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