SoftBank and "Cathie Wood" led Ark are in talks to participate in a significant investment in Tether

Japan's SoftBank Group and Cathie Wood's Ark Investment Management are negotiating to participate in a significant investment round for Tether Holdings SA, the issuer of Tether, which may solidify Tether's position as one of the largest private companies in the world.

These two long-active investors in the technology sector are in early discussions with several other well-known institutions to provide funding support to Tether, the world's largest stablecoin issuer. According to insiders, this is Tether's largest external financing attempt to date.

Earlier this week, media reports indicated that this round of financing could value Tether at up to $500 billion, enough to rank it among the most valuable private companies globally. The company plans to raise between $15 billion and $20 billion by selling approximately 3% of its shares through a private placement.

Both SoftBank and Tether declined to comment. Ark's representatives have not yet responded.

Support from investment giants SoftBank and Ark will help Tether expand its business footprint and further enhance its mainstream recognition in the technology and financial sectors. Tether is also seeking greater political legitimacy in markets including the United States; it had previously faced scrutiny for alleged involvement in illegal financing.

Tether's advisor for this round is Cantor Fitzgerald LP, an investment bank based in New York, which has long been led by current U.S. Secretary of Commerce Howard Lutnick and is responsible for custodial services for Tether's assets.

Tether's core product is USDT, a digital asset pegged to the U.S. dollar, allowing holders to transfer funds outside the traditional banking system. Based in El Salvador, Tether has accumulated significant wealth by investing reserve funds in cash-like assets, such as U.S. Treasury bonds, and earning interest.

The company is led by CEO Paolo Ardoino and co-founder Giancarlo Devasini, who also serves as chairman and is the largest shareholder. If Tether's valuation reaches $500 billion, Bloomberg estimates that Devasini's stake would be worth nearly $224 billion.

SoftBank, headquartered in Tokyo, is known for its bold technology investments led by founder Masayoshi Son. Its investment scope includes data centers, autonomous driving, semiconductors, and a planned $30 billion investment in OpenAI.

Led by "Wood Sister," Ark has also invested in stablecoins, including Tether's biggest competitor—Circle Internet Group. Circle is now publicly listed. Circle's stablecoin has a market value of approximately $74 billion, while the tokens held by Tether users are valued at up to $173.5 billion