TOKYO/NEW YORK - Japanese investment powerhouse SoftBank, helmed by Masayoshi Son, and Cathie Wood's ARK Investment Management are in early negotiations for a significant equity investment in Tether, the issuer of the dominant USDT stablecoin.

The firms are part of a group discussing a massive $20 billion capital raise. Tether reportedly aims to sell a 3% stake, which would value the company at an astonishing $500 billion, surpassing private aerospace giant SpaceX.

This aggressive pursuit is driven by Tether’s market dominance (USDT market cap: $172B) and exceptional profitability. The company reported $4.9 billion in Q2 operating profit, with its CEO claiming a staggering 99% margin. Furthermore, Tether has become a major player in traditional finance, accumulating U.S. Treasury holdings that outstrip several nations.

SoftBank views the investment as a strategic move to secure a Web3 finance foothold, aligning with its history of bold technology bets. For ARK, it's a critical expansion of its crypto portfolio, building on existing stakes in companies like Circle. The potential deal underscores institutional finance's growing recognition of stablecoins as vital, profitable market infrastructure.