Key Insights
- Tether may consider tokenising its shares after completing a sale, Bloomberg reported.
- A Tether investor sought to sell equity at a price far below the planned funding valuation.
- Tether issues USDT, the largest stablecoin by circulation in the cryptocurrency market.
Tether, the issuer of the USDt stablecoin, is weighing the tokenisation of investor equity and potential share buybacks as part of a broader effort to manage liquidity while pursuing a valuation of up to $500 billion.
The move would place the stablecoin firm among the world’s most valuable private companies, alongside names such as OpenAI and SpaceX, based on private market estimates.
According to Bloomberg, Tether recently blocked an existing shareholder from selling a stake. According to the report, Tether is in talks to raise $20 billion in exchange for a 3% stake in its issuer business, indicating a sharply higher valuation than earlier transactions.
Tokenisation Emerges as a Liquidity Tool
Bloomberg reported that Tether recently blocked an existing shareholder from selling part of their stake. The investor had sought to offload about $1 billion in equity, a deal that would have valued the company at around $280 billion. Tether intervened as it aims to complete the larger funding round under the guidance of major global investment banks.
Following the close of the raise, Tether plans to offer liquidity through structured buybacks or tokenised representations of equity. In a statement to Bloomberg, a company spokesperson stated that the attempts to bypass approved processes or engage with unauthorised parties would be “imprudent” and “reckless,” adding that such efforts are not expected to proceed.
Stablecoin Scale Drives Valuation Debate
Tether’s valuation ambitions rest on the scale of its stablecoin operations. USDT was recently valued at approximately $186 billion in circulation, according to CoinGecko, having expanded by around $46 billion over the past year. Circle, Tether’s closest rival, reported around $78 billion in USDC in circulation during the same period.
Additionally, Circle went public in June at a $6.9 billion valuation, a move that drew attention from Wall Street ahead of stablecoin legislation passed this summer. On Friday, Circle shares fell 2.3% to $86, according to Yahoo Finance.
Interest in Tether has also come from major investors. Bloomberg previously reported that Japan’s SoftBank and Ark Investment Management have considered investing; nonetheless, Tether has not provided a timeline for any public listing.
Onchain Finance Gains Regulatory Backing
Tether’s exploration of tokenised equity comes as regulators signal growing acceptance of on-chain financial infrastructure. On Thursday, the US Securities and Exchange Commission approved the Depository Trust and Clearing Corporation to tokenise stocks, exchange-traded funds, and bonds.
