Original Article Title: "Is the 'Endgame' of Traditional Banks Near? Tether's $500 Billion Valuation Challenges OpenAI!"

Original Source: Bitpush News

A funding news from the stablecoin giant Tether is enough to make the entire traditional financial sector hold its breath.

According to Bloomberg, the "Central Bank of the Cryptocurrency World," overseeing nearly $173 billion USDT, is seeking to raise a massive $150-200 billion in a round of funding at a valuation of up to $500 billion.

What does this number signify? It means that Tether's size will directly rival global top tech unicorns like OpenAI and SpaceX, and its staggering $4.9 billion quarterly net profit puts many traditional financial institutions to shame. This is not just funding; it is a "stealth whale" rising from the crypto world, making a value statement to the traditional financial system.

$500 Billion Valuation: A Bold Number Game

Tether dares to propose such a bold valuation, backed by its unshakable core advantages:

· Absolute Market Dominance: Tether's USDT, with a market cap of around $172.8 billion, holds the top spot in the stablecoin market, serving as the de facto settlement currency in the crypto world. Its daily trading volume easily surpasses billions of dollars, forming the deepest liquidity moat.

· Remarkable Profitability: In the second quarter of 2025, Tether reported a $4.9 billion net profit, with its reserve assets reaching $162.5 billion, exceeding its $157.1 billion liabilities, demonstrating a strong financial position. The majority of this massive profit comes from its holdings of high-yield U.S. Treasury Bonds.

The Celebration Behind: A Zero-Sum Game

Despite Tether towering over its peers with its scale and profitability, the competition in the stablecoin race is unprecedentedly fierce. A report from JPMorgan analysts points out that the total market value of stablecoins is growing in line with the overall crypto market, indicating that this is a "zero-sum game" - where the issuer's main task is to compete for market share rather than expanding the entire pie.

This "Arms Race" is unfolding on multiple fronts, with challengers attempting to carve out a piece of the pie from Tether and Circle's dominance.

Tether's Own Strategic Adjustment: Compliance-Oriented USAT Counterattack

To address regulatory and challenger threats, Tether is undergoing a strategic adjustment. The plan is to launch a new stablecoin called USAT, designed to fully comply with the recently passed U.S. "GENIUS Act." This is in contrast to Tether's existing USDT, of which around 80% of reserves meet the requirements of this Act.

· Compliance-Focused Anchoring: USAT's reserves will be custody by institutions with banking licenses such as Anchorage Digital, helping Tether build institutional trust, reduce reliance on third-party banks, and avoid risks similar to those Circle faced during the 2023 Silicon Valley Bank Crisis.

· Key Personnel Addition: Tether has appointed Bo Hines, Executive Director of Trump's "Digital Asset Advisory Committee," as its CEO for U.S. operations. Hines was a key figure in the Trump administration's cryptocurrency policy, helping drive the passage of the "GENIUS Act," providing a new regulatory framework for stablecoins, directly related to Tether's plan to launch the compliant stablecoin USAT.

· Close Connections to Trump Allies: Cantor Fitzgerald, a major custodian of Tether's reserves, former CEO Howard Lutnick, is the current U.S. Secretary of Commerce. This endorsement at the highest political level provides Tether with a significant trust advantage for its expansion in the U.S. market.

· Profit Maximization: By directly managing USAT's reserves, Tether aims to retain more interest income, thereby increasing profitability and further enhancing its business model.

These actions indicate that Tether is shifting from a strategy of "evading regulation" to "actively embracing" and even "shaping" regulation. If Tether can successfully operate under U.S. regulation, it can not only eliminate its biggest valuation obstacle but also receive a significant endorsement, attracting a broader range of institutional funds.

Actions by Other Competitors

Facing challenges from all sides, Tether's main competitor Circle is also not sitting idly by. It is building a dedicated stablecoin blockchain called Arc, aiming to firmly anchor USDC at the center of the cryptocurrency ecosystem by optimizing speed, security, and interoperability. Circle has partnered with payment giants like Visa to explore using USDC for merchant payments on blockchains like Solana.

Financial technology giants have also seen the immense potential of the stablecoin market and are entering the field. Companies like Robinhood and Revolut are reportedly developing their own stablecoins, attempting to leverage their large user base and mature financial infrastructure to directly challenge existing stablecoin issuers.

The decentralized finance (DeFi) sector is also launching a challenge to stablecoin dominance. As one of the most popular DeFi protocols, Hyperliquid is preparing to launch its native stablecoin USDH to reduce reliance on Circle's USDC. J.P. Morgan analysts note that Hyperliquid's perpetual contract exchange currently holds 7.5% of the total USDC supply. Once USDH successfully launches and establishes liquidity, this market share could potentially shift directly from USDC, posing a significant threat to Circle.

Conclusion: A Bold Gamble or a New Financial Giant?

When Tether is valued at $500 billion, rivaling AI giant OpenAI, what we see is not just the rise of a company, but a revolution in financial paradigms. The intermediary model on which traditional banks rely is being completely disrupted by the global instant settlement capability of stablecoins.

This is no longer a simple competition but a paradigm shift. Tether, with its actual valuation, declares to the world: the future of finance does not belong to the concrete bank buildings but to a global liquidity network built with code. Banking services no longer need branches, just a cryptocurrency wallet.

Just as the internet allowed information to flow freely, stablecoins represented by Tether are enabling the free flow of value. When financial infrastructure becomes as simple as sending an email, how much space is left for traditional banks to survive? Perhaps the answer lies within the staggering valuation of Tether.

This silent financial revolution has already arrived, not in the future tense, but in the present tense.

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