Stablecoin giant Tether is exploring tokenizing its equity following a planned share sale that could raise up to $20 billion and value the company at roughly $500 billion.
The USDT issuer is weighing multiple liquidity options for investors, including share buybacks or blockchain-based tokenized shares, according to a Bloomberg report published December 12.
The move comes as Tether intervened to halt at least one existing shareholder from selling stock at a steep discount that would have valued the firm around $280 billion.
What Happened
Tether's planned fundraising would position the company among the world's highest-valued private firms, alongside SpaceX and OpenAI.
The company is not currently planning to allow existing shareholders to sell into the main round, Bloomberg reported citing people familiar with the matter.
This creates a liquidity challenge for early investors, as Tether has provided no timeline for an eventual IPO.
Tokenization would allow investors to hold digital representations of their equity stake, potentially offering an alternative liquidity path.
Tether launched its Hadron tokenization platform in November 2024, enabling users to mint blockchain-based representations of stocks, bonds, and commodities.
Any tokenized equity structure could build on that framework, though no decision has been made.
The stablecoin issuer called attempts to bypass its formal fundraising process "imprudent" and "reckless" after confirming it received assurances the discounted sale would not proceed.
Tether has reportedly held talks with strategic investors including SoftBank and Ark Invest as part of the fundraising effort.
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Why It Matters
Tether's USDT dominates the stablecoin market with approximately $186 billion in circulation, representing the world's largest dollar-pegged token.
The company has forecast profits of roughly $15 billion this year, underpinning its aggressive valuation targets.
A $500 billion valuation would dramatically exceed Tether's crypto-native peers and establish it among the most valuable private companies globally.
The tokenized equity consideration reflects broader momentum in real-world asset tokenization, which has reached over $18 billion in circulating value according to rwa.xyz data.
Companies including Galaxy Digital, Kraken, and Robinhood have already introduced tokenized share models in recent years.
Tether's exploration of blockchain-based equity could set a precedent for how major crypto companies manage shareholder liquidity without traditional public listings.
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