Key Notes
- Tether aims to provide structured exit pathways for investors while preventing discounted secondary sales.
- The planned raise follows Tether’s move to block at least one shareholder from selling shares at a valuation of about $280 billion, well below the firm’s target.
- Tether’s move of tokenized equity aligns with broader industry trends, as firms like Galaxy Digital, Kraken, and Robinhood adopt tokenized share models.
USDT stablecoin issuer Tether is looking to raise a massive $20 billion through a stock sale, at a valuation of $500 billion.
The firm is exploring different post-raise options such as corporate buybacks, as well as tokenizing its equity on a blockchain.
Sources familiar with the matter said that Tether is exploring different exit options for its shareholders.
Tether Warns Investors of Bypassing Formal Process
Tether’s latest decision for the stock sale comes as the stablecoin issuer looks to block at least one existing shareholder from selling stock at a valuation of roughly $280 billion.
This is well below the $500 billion target of the firm through the latest fundraising.
The USDT stablecoin firm confirmed to Bloomberg that it had “received clear confirmation that these efforts will not proceed.”
It has also warned investors against attempts to bypass the formal process being led by global investment banks.
Over the past year, Tether has been on a USDT minting spree as part of its expansion plans, amid the growing stablecoin market.
The company has so far added $46 billion to its market cap, now at $186 billion.
The USDT-issuer is projecting profits of $15 billion this year. People familiar with the matter said the company is concerned that discounted secondary sales could weaken confidence in its capital raise.
Tether does not currently plan to permit existing shareholders to divest as part of the main deal.
However, this isn’t the first time reports have surfaced about Tether raising $20 billion through a stock sale.
The early-stage discussion began earlier this year, in September 2025, wherein the company valued itself at par with OpenAI and SpaceX.
Exploring the Path of Tokenized Equity
Tether is looking to explore the path of tokenized equity amid the growing market trend. Companies including Galaxy Digital, Kraken, and Robinhood have introduced tokenized shares in recent years.
Tether launched its own tokenization platform, Hadron, last year in November 2024 to support asset digitization across categories.
Although still in its early stages, the tokenization market saw real-world asset tokens reach a total market value of $18 billion this year, according to rwa.xyz.
On the other hand, startups across the crypto sector have also increasingly relied on buybacks to provide interim liquidity.
Ripple XRP $2.04 24h volatility: 2.1% Market cap: $123.05 B Vol. 24h: $2.94 B has repurchased more than 25 percent of its outstanding shares in recent years.
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