(Reuters) -Crypto giant Tether is in talks to raise as much as $20 billion in a private placement that could value the El Salvador-based firm at about $500 billion, Bloomberg News reported on Tuesday.

The company is seeking $15 billion to $20 billion for roughly a 3% stake, the report said, citing people familiar with the matter.

Still, the figures were top-end targets and eventual numbers could end up significantly lower, with the valuation of the company depending on the stake offered, the report added.

Tether's chief executive, Paolo Ardoino, said in a post on X that the company is evaluating a raise from a selected group of high-profile key investors, without disclosing any further details.

Tether's USDT stablecoin, which is pegged to the U.S. dollar, has a market capitalization of about $173 billion, according to data from CoinGecko.

Tether has solidified its position as a dominant player in the stablecoin market, offering cryptocurrencies pegged to traditional currencies to minimize price volatility and enable seamless transactions between digital assets.

In August, the firm appointed former White House crypto policy executive Bo Hines as a strategic adviser to bolster its expansion in the United States, where crypto companies have benefited from President Donald Trump's favorable stance on digital currencies.

The company recently unveiled plans to launch a U.S.-based stablecoin, called USAT, designed for U.S. residents.

Rival stablecoin firm Circle went public in the United States through a blockbuster IPO in June.