Tether Eyes Stock Tokenization Amid $20B Fundraising
Tether Considers Tokenizing Stock Amid $20 Billion Fundraise: Bloomberg
Tether Holdings SA, the private company behind the world’s largest stablecoin USDT, is exploring ways to give investors more liquidity as it prepares a major capital raise, Bloomberg reported on Friday, citing people familiar with the matter.
According to Bloomberg, Tether is trying to raise as much as $20 billion through a share sale that could value the company at around $500 billion. As part of those discussions, executives are weighing options including share buybacks and the potential tokenization of Tether’s equity after the fundraising deal closes.
The liquidity planning follows Tether’s reported intervention to stop some existing shareholders from selling stakes in the secondary market. The company moved to halt those sales after some investors attempted to offload shares at a significant discount, a situation that can complicate or undermine a fundraising process by establishing an unfavorable reference price.
One proposal under consideration involves representing Tether shares as digital tokens on a blockchain, a structure often described as tokenized equity. Another option discussed is buybacks, which can provide a more controlled path for investor exits than informal secondary sales.
Tether also warned investors against trying to bypass its formal process. “It would be imprudent, and indeed reckless, for any investor to attempt to circumvent the established process,” the company said, according to Bloomberg.
The conversations highlight a recurring tension for large private companies: early investors may want liquidity before a traditional public listing, while management may want to limit off-market transactions that could impact valuation expectations. In Tether’s case, the issue is unfolding alongside an ambitious fundraising effort and a broader push to structure investor access and exits more tightly.
- Fundraise: Tether is seeking up to $20 billion at a reported $500 billion valuation.
- Investor liquidity: The company is exploring buybacks and possible equity tokenization.
- Secondary sales: Tether stepped in to stop some shareholders from selling stakes at a discount.
