Messaging platform Telegram is raising at least $1.5 billion through a new bond offering.

The firm is raising the funds through a five-year bond with a 9% yield, which has drawn interest from both returning investors such as the world’s largest asset manager BlackRock and Abu Dhabi’s sovereign wealth fund Mubadala, as well as new entrants including hedge fund Citadel, the Wall Street Journal reports citing sources with the deal.

The proceeds will be used to repurchase debt from Telegram’s earlier bond issuance in 2021, due next March. The new bonds are convertible into equity at a discount if Telegram goes public.

Telegram originally developed layer 1 network TON, before making it an independent operation. In April, tokenization firm Libre said it plans to tokenize $500 million worth of Telegram debt on TON as Telegram Bond Fund (TBF).

Read more: Telegram’s TON Takes On Real World Assets With Libre’s $500M Tokenized Bond Fund

Telegram reportedly has over 1 billion monthly active users and 15 million paid subscribers, having doubled the figure in one year according to Durov.

Financially, the firm turned a corner in 2024, reporting a $540 million profit on $1.4 billion in revenue, up from a $173 million loss in 2023, the WSJ wrote. It projects a profit of more than $700 million for 2025.

Telegram has grown its revenue by expanding its ad business and introducing features like in-app digital gifts and a platform for developers to build apps and bots.

Telegram and Citadel did not immediately respond to requests for comment.

Changpeng Zhao, founder and former CEO of Binance, has pushed back against a recent Wall Street Journal (WSJ) article that claims he is acting as a “fixer” for World Liberty Financial (WLFI), a DeFi venture linked to the Donald Trump family.

The WSJ report alleged that Zhao facilitated international introductions for WLFI, including engagements in countries like Pakistan.

However, in a May 23 post on X, Zhao stated that the article was misleading and accused the publication of intentionally distorting facts to fit a narrative.

‘Fixer’ allegations

The former Binance executive addressed the report’s suggestion that he arranged introductions between Bilal Bin Saqib, head of the Pakistan Crypto Council, and WLFI.

The article indicated that this connection led to Saqib’s appointment as an advisor to the group and the signing of a memorandum of understanding with the Pakistani government.

However, Zhao rejected the alleged connections, saying:

“I am not a fixer for anyone. I did NOT ‘connect Mr. Saqib with the WLF team.’ They had known each other way back, whereas I only met with Mr. Saqib for the first time in Pakistan. I did NOT make any ‘introductions for World Liberty’s foreign travels.’”

The former Binance CEO also dismissed claims that he had a role in organizing WLFI’s foreign visits, adding that the report was built on false premises. He noted:

“If you get a couple of factual errors wrong, it’s possible to fix. When you make up a story with negative intentions to begin with, there is no way to fix the ‘inaccuracies.’ It’s the entire story.”

Binance’s Zhao vs WSJ

This marks the latest dispute between Zhao and WSJ over what he claims are misleading reports about him.

In April, Zhao dismissed claims that he had agreed to cooperate against Justin Sun as part of a plea deal with US authorities. He also denied prior reports suggesting that President Trump had sought an investment in Binance.

Considering this, the Binance founder likened WSJ’s reporting approach to Cunningham’s Law, which says that the best way to get the correct answer is to post the wrong one.

But Zhao lampooned the traditional media house, saying:

“WSJ instead of doing journalism, has pretty much resorted to Cunningham’s Law, with negative intentions…This is NOT how journalism should work.”

He also concluded that the WSJ stories are being used by anti-crypto interests to undermine the industry, its global leaders, and pro-crypto movements in the US.

He said:

“WSJ is just the mouthpiece. There are forces in the US that want to hinder efforts in making the US the capital of crypto.”

Mentioned in this article

Major U.S. banks are weighing launching a joint stablecoin to fend off crypto competition.

Financial heavyweights like JPMorgan Chase (JPM), Bank of America (BAC), Citigroup (C), and Wells Fargo (WFC), have held discussion on the subject, the Wall Street Journal reported, citing people familiar with the matter. The talks are still in early stages and could change, the report added.

Within the consortium are also payments ventures owned by these banking powerhouses, like Early Warning Services, which runs Zelle, and The Clearing House, which handles real-time payments.

Stablecoins are cryptocurrencies pegged to the value of another asset like a fiat currency or commodity, can settle transactions in a matter of seconds. Banks see potential in them to improve their operations, with international remittances currently taking days through the traditional system.

One idea floated in the consortium’s talks is a stablecoin model open to other banks beyond the core group. Regional banks have also explored similar paths, the WSJ adds, citing sources familiar with the discussions.

The push comes as Washington inches toward regulation. The Senate recently advanced the Guiding and Establishing National Innovation for U.S. Stablecoin (GENIUS) Act, which Senator Hagerty (R-Tenn) described as one that “establishes the first-ever pro-growth regulatory framework for payment stablecoins.”

The improved regulatory environment has seen crypto firms seek bank charters, further adding pressure to banks.

Some of these large financial institutions have already made their move. Société Générale launched a euro-denominated stablecoin, EURCV, back in 2023 through its crypto arm SG Forge. It’s reportedly now looking to launch a U.S. dollar stablecoin as well.

Read more: U.S. Stablecoin Bill Approval Could Trigger a Long-Term Crypto Bull Market: Bitwise

Some of the biggest banking companies in the US are reportedly exploring a team-up to launch a crypto stablecoin.

Companies owned by JPMorgan, Bank of America, Citigroup and Wells Fargo have discussed the possibility of jointly issuing a stablecoin, The Wall Street Journal reported on May 22, citing people familiar with the matter.

Other financial institutions linked to the potential stablecoin include Early Warning Services, the parent company of digital payments network Zelle, and the payment network Clearing House.

The discussions are still in the early stages, and a final decision on the project could change depending on the regulatory environment and the demand for stablecoins.

A JPMorgan spokesperson told Cointelegraph the company had no comment. Bank of America, CitiGroup, and Wells Fargo did not immediately respond to requests for comment.

On May 20, the US Senate voted 66-32 in favor of advancing discussion on the stablecoin-regulating Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. 

The bill outlines a regulatory framework for stablecoin collateralization and mandates compliance with Anti-Money Laundering laws. The bill is now headed to debate on the Senate floor.

Earlier this week, White House crypto czar David Sacks said he expects the bill will be passed and that it will receive bipartisan support.

However, high-ranking Democrats plan to amend the bill to include a clause prohibiting President Donald Trump and other US officials from profiting from stablecoins.

Trump and his family launched the crypto platform World Liberty Financial, which created the USD1 stablecoin in March. Critics argue that President Trump stands to personally benefit from passing favorable stablecoin regulation.

Related: World Liberty Financial brushes off oversight concerns from Congress

Stablecoin demand surges

The demand for stablecoins has been on the rise, with nation states adopting and institutions wanting to incorporate stablecoins.

The total market capitalization of stablecoins has shot up to $245 billion from $205 billion at the start of the year, representing a 20% increase.

Earlier this week, it was reported that yield-bearing stablecoins now account for nearly 4.5% of the entire stablecoin market, with a circulating supply of $11 billion.

Austin Campbell, a New York University professor and founder of Zero Knowledge Consulting, said the American banking lobby is “panicking,” as stablecoins can disrupt the traditional banking business model.

Earlier this month, it was reported that tech giant Meta is exploring ways to incorporate stablecoin payments into its platforms.

Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

The former CEO of Binance, Changpeng Zhao or CZ, agreed to assist prosecutors in building their case against Justin Sun, the founder of Tron, The Wall Street Journal reported on April 12. The exclusive report that cited anonymous sources familiar with the matter stated:

“As part of Zhao’s plea deal, he agreed to give evidence on Sun to prosecutors.”

This “arrangement” or clause of his plea deal “hasn’t previously been reported,” the report said.

CZ discredits WSJ report as “hit piece”

Prior to the WSJ report’s publication, CZ posted on X that he had learned that the WSJ was writing “another baseless hit piece.” He noted that he had received the information from “multiple” sources.

After the report’s publication, CZ further discredited it on X, stating:

“WSJ is really TRYING here. They seem to have forgotten who went to prison and who didn’t.”

CZ pleaded guilty to violating anti-money laundering laws by failing to institute proper measures to bar criminals from using the largest crypto exchange. He also resigned from his position as CEO and agreed to pay a $50 million fine. Zhao was also barred from involvement in Binance for three years.

After serving a four-month sentence, CZ was released on Sept. 27, 2024. He claims that his prison sentence is proof that he did not agree to inform on Sun since “People who become gov witnesses don’t go to prison. They are protected.”

The above claim by CZ is not entirely accurate. It is true that providing testimony or evidence against another individual can lead to benefits in a plea deal, like a reduction in sentence or immunity. However, individuals can still be prosecuted if prosecutors obtain evidence of their crimes independently.

Nevertheless, CZ noted:

“I heard someone paid WSJ employees to smear me.”

CZ has denied previous WSJ claims

Last month, the WSJ published a report claiming that CZ was trying to obtain a pardon from U.S. President Donald J. Trump for his guilty plea.

The report further alleged that representatives of Trump’s family were in talks to invest in the U.S. arm of Binance, which paid a historic fine of $4.3 billion after pleading guilty. The Trump family is reportedly interested in acquiring a stake in the exchange’s U.S. entity.

In a post on X, CZ claimed that the WSJ report had gotten the “facts wrong.” He admitted that while no convicted felon would “mind a pardon,” he has had no such discussions. CZ added:

“Feels like the article is motivated as an attack on the President and crypto, and the residual forces of the “war on crypto” from the last administration are still at work.”

Reiterating his sentiment on April 12, CZ responded to a user stating that he “also heard some rumors about some players “lobbying” against us again in the US.”

Despite CZ’s previous denials, WSJ doubled down on its previous claims about Binance negotiating with Trump family about a possible deal. The report also alleged that the exchange is trying to loosen the reigns of the monitor that oversees its compliance with U.S. laws. Binance had agreed to the monitoring as part of its plea deal.

Sun calls CZ a “mentor and close friend”

In an X post, Sun said that he was “not aware” of the plea deal arrangement alleged by “circulating rumors.” He noted:

“CZ is both my mentor and a close friend—he has played a crucial role in supporting me during my entrepreneurial journey.”

He added that CZ’s “conduct and principles remain the highest standard I strive to follow as a founder.”

On March 22, 2023, the U.S. Securities and Exchange Commission (SEC) charged Sun and his companies for violating securities laws and engaging in fraud. The SEC alleged that the sale of TRON (TRX) and BitTorrent (BTT) tokens constituted unregistered securities offerings.

The SEC further claimed that Sun engaged in illegal wash trading to inflate the price of TRX. Wash trading refers to an illegal practice where a trader buys and sells a security almost simultaneously to manipulate the market. The fake trades indicate a higher trading volume and could attract legitimate investment in the security.

The SEC’s allegations also included that Sun and his companies orchestrated a scheme where high-profile celebrities were paid to endorse TRX and BTT without disclosing their compensation. Eight celebrities, including Lindsay Lohan, were separately charged by the SEC for participating in the endorsement scheme.

While Sun was fighting to have the SEC’s case dismissed, on Feb. 26, Sun and the SEC jointly filed a request to pause the legal battle to allow for settlement negotiations. Sun’s legal team said that the negotiations could open a path to resolution without further litigation.

Referring to the WSJ report in a separate X post, Sun said, “They always try to use rumors to drive us apart, to divide us instead of unite us.” He added that “standing together” was the only way to “change everything.”

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Changpeng “CZ” Zhao has denied claims that representatives of President Donald Trump’s family were involved in discussions to acquire a financial stake in Binance.US.

This was after the Wall Street Journal (WSJ) published a report suggesting such talks had taken place.

Details From The Statement

Following the report’s release, Zhao addressed the claims in a March 13 post on X, stating, “I have had no discussions of a Binance US deal with … well, anyone.”

The former Binance CEO explained that more than 20 people had told him they had been contacted by WSJ and another media outlet, who were attempting to verify whether he had struck a deal for clemency.

The article alleged that Zhao was seeking a presidential pardon from Trump, which could allow him to take on an operational or management role at Binance. According to the WSJ, Binance approached Trump’s allies last year with a business proposal as part of its plan to strengthen its U.S. operations.

Zhao denied these claims, suggesting that the report was politically motivated and intended as “an attack on the President and crypto.” He also asserted that “residual forces of the ‘war on crypto’ from the last administration are still at work.”

CZ, who served time after pleading guilty to violating U.S. anti-money laundering laws, noted that he is the only individual in U.S. history to receive a prison sentence for a single Bank Secrecy Act violation. “No felon would mind a pardon,” he said, adding that he remains dedicated to advancing cryptocurrency both in the U.S. and globally.

Implication of CZ’s Possible Return

In November 2023, Binance settled with U.S. authorities, agreeing to pay $4.3 billion in fines. As part of the agreement, Zhao pleaded guilty to failing to implement an effective anti-money laundering program at the exchange. The company also committed to fully exiting the United States market.

CZ later resigned as CEO, with reports indicating that he was permanently barred from operating or managing Binance under the terms of the settlement. A presidential pardon would possibly change the platform’s ability to conduct business in the country.

Since Trump took office, his administration has taken a more supportive stance on digital assets, reversing the strict regulatory approach of the previous government.

Under acting Chair Mark Uyeda, the U.S. Securities and Exchange Commission (SEC) has softened its enforcement efforts against crypto firms. Several high-profile cases, including those involving Binance and Coinbase, have been paused or dropped.