Tether Seeks $500B Valuation in $20B Raise

CFTC Launches Tokenized Collateral Pilot | Sign Pushes Sovereign Blockchain Model

Marco Manoppo & Karon Pangestu
September 24, 2025

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Good Morning.

The SEC is planning to roll out a new “innovation exemption” that would let crypto firms launch products in the US without going through the usual regulatory hurdles. If it goes through, it could open the door for faster product rollouts and give the industry room to experiment in ways it hasn’t been able to before.

In Today's Email:

What Matters: Tether Seeks $500B Valuation in $20B Raise 🤑
Case Study: Base Sequencer Regulation Debate 🗣️
Governance & Features: Sign Pushes Sovereign Blockchain Model 🌐

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Narratives: YZi Labs Related Token

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TOGETHER WITH

0G Launches Aristotle Mainnet to Power the DeAI Era

Aristotle is live, 0G’s mainnet launch turns the vision of decentralized AI into reality. With more than 100 partners across cloud, custody, wallets, DeFi, and infrastructure, the 0G ecosystem is positioned from the start to expand AI without limits.

The network is built for scale, supporting 11K TPS with major backing from QuickNode, ThirdWeb, and Ankr. This is not just another chain launch but the foundation for AI as a public good, open and unstoppable.

TradFi is yesterday. DeAI is today. The real question is, are you ready to build?

WHAT MATTERS

Tether Seeks $500B Valuation in $20B Raise

State of play: Tether, the issuer of the world’s largest stablecoin USDT, is in early talks to raise between $15B and $20B through a private placement that could value the firm at around $500B.

The deal, advised by Cantor Fitzgerald, would make Tether one of the most valuable private companies globally, alongside OpenAI and SpaceX.
CEO Paolo Ardoino said the funding would support expansion across stablecoins, AI, commodities, energy, and media.
Tether posted $4.9B in Q2 profit, driven by interest income from its $172B in reserves.
The company is also preparing a US comeback under Trump’s pro-crypto administration with plans for a regulated stablecoin.
Investors have been given data room access, and a deal could close by year-end.

Why it matters: A $500B valuation would put Tether in the same league as SpaceX and OpenAI, cementing its role not just as the top stablecoin issuer but as one of the most valuable private companies in the world.

Our take: Tether’s profits from US Treasuries are massive, but its valuation push also highlights risks. Unlike Circle, it still operates with lighter oversight, and questions remain about reserve transparency.

For builders and investors: Tether’s expansion signals stablecoins moving beyond payments. Builders can tap new use cases, while investors must balance growth potential with oversight risks.

CASE STUDY

Base Sequencer Regulation Debate

A centralized sequencer that can change the matching/execution of orders obviously must be regulated. Otherwise, any exchange could set up an "imutable matching engine program" and then run on their own server provider in order to bypass all US securities law. The base contract
— Max Resnick (@MaxResnick1)
10:15 PM • Sep 22, 2025

Jesse Pollak of Base explained that Base’s sequencer is just a fast lane for transaction ordering, not a matching engine like in traditional exchanges. Users can always transact directly through Ethereum, ensuring decentralization and censorship resistance.

He stressed that execution and matching happen at the smart contract level, not at the sequencer.

Max Resnick from Anza countered that if a centralized sequencer can influence matching or execution, it could fall under securities regulation. He noted the Base contract is upgradeable, and the multisig could block slow-path transactions.

Anza is Solana focused research and development firm building.

Paradigm’s Dan Robinson cautioned against invoking regulators to target competitors, warning that such tactics could backfire on the broader crypto ecosystem.

Take a peek at our referral reward at the bottom of this issue. Share this newsletter and receive our list of 500 crypto VC individuals 👇

INSIGHTS

CFTC Launches Tokenized Collateral Pilot with Stablecoins

The CFTC is moving forward with a tokenized collateral initiative, allowing derivatives traders to post assets like stablecoins as margin.

Announced by Acting Chair Caroline Pham, the program builds on earlier pilots with Circle, Coinbase, Crypto.com, Moonpay, and Ripple.
The effort aims to boost efficiency, transparency, and modernization in capital markets, while aligning with the GENIUS Act’s stablecoin framework.
Industry stakeholders have until Oct. 20 to submit feedback.

FEATURES & GOVERNANCE UPDATE

Sign Pushes Sovereign Blockchain Model

Sign is developing blockchain infrastructure for governments called Sovereign Infrastructure for Global Nations (S.I.G.N.), combining private CBDC chains for domestic use with public Layer 2 networks for global liquidity.

Its system has two main pillars:

Asset Issuance and Disbursement – enabling national stablecoins, welfare payments, and even large-scale UBI with programmable and transparent distribution.
Onchain Data and Attestations – bringing digital IDs and certificates onchain to unlock financial services, regulatory tools, and new governance models.

S.I.G.N. aims to deliver programmable assets, verifiable data, and citizen access to digital economies at scale.

Other notable feature updates:

Boros has launched v1.0.
Kalshi launched KalshiEco.
MetaMask launched MetaMask USD (mUSD).
Ethena deployed USDe and sUSDe on Avalanche.
Polymarket has introduced trading on company earnings.
EF announced the formation of a decentralized AI (dAI) team.

QUICK BITES

Tether seeks $500B valuation.
FTX Trust sues bitcoin miner Genesis Digital.
CFTC allows Stablecoins as derivatives collateral.
Morgan Stanley to let E-trade clients trade crypto.
Crypto millionaire count surges 40% to nearly 250,000.
Ethereum ETFs now account for 15% of spot market volume.
Aster squares up against Hyperliquid following CZ endorsement.
Changpeng Zhao refutes claim YZi Labs will take on outside capital.
White House eyes year-end for sweeping crypto market structure bill.
SEC Chair pushes 'innovation exemption' to fast-track crypto products.
ReserveOne files with SEC to advance $1B Nasdaq listing via SPAC merger.

NOTEWORTHY READS & MEME

Dune’s read on RWA Report 2025
Delphi Digital’s thread on Plasma Foundation
Hitesh’s read on Are you really prepared to become rich?

tomorrow's south park episode is about...
prediction markets????
— John Wang (@j0hnwang)
5:06 AM • Sep 24, 2025

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.