Tether is preparing a stock offering that could raise up to $20 billion at a $500 billion valuation, with plans under consideration to tokenize its shares after the deal.
Key Takeaways
- Tether aims to raise up to $20 billion through a private stock offering, targeting a $500 billion valuation.
- The company may tokenize its equity post-sale to improve liquidity for shareholders.
- Tether blocked a shareholder’s attempt to sell shares at a steep discount, calling it “reckless”.
- Only 3% of shares will be offered, and current investors won’t be allowed to sell in the main round.
What Happened?
Tether, the issuer of the world’s largest stablecoin USDT, is seeking to raise a massive $20 billion in a private placement deal that would value the firm at $500 billion. As part of its liquidity strategy, the company is exploring whether to tokenize its equity, turning shares into digital tokens that could be traded on a blockchain.
The move comes amid rising shareholder interest in selling stakes, with at least one investor attempting to offload shares at a steep discount. Tether intervened and blocked the sale, emphasizing its commitment to maintaining its valuation goals.
Tether is eyeing a $500B valuation, a $20B raise, and the tokenization of its stock.
— 0xMarioNawfal (@RoundtableSpace) December 12, 2025
So… are we about to trade volatile USDT? pic.twitter.com/LkaBHdX9s1
Tether’s Tokenization Plans and Fundraising Push
Tether’s leadership is currently focused on executing a high-stakes stock offering that could become one of the largest private fundraises in history. While the firm has not publicly confirmed a timeline or a public offering, it is in talks with major strategic investors such as SoftBank and Ark Invest.
Executives are weighing several post-sale liquidity strategies, including:
- Tokenizing company shares, potentially using its own tokenization platform, Hadron.
- Offering buybacks for shareholders seeking liquidity.
- Providing digital representations of equity, allowing for blockchain-based ownership and transfers.
Tether launched Hadron in November 2024 to tokenize stocks, bonds, and commodities. This infrastructure could form the basis for a tokenized equity model, although a final decision has not yet been made.
Tensions with Shareholders Over Secondary Sales
While only 3% of Tether’s equity is expected to be sold in the primary offering, internal tensions are brewing. At least one shareholder reportedly attempted to sell their stake at a valuation around $280 billion, significantly undercutting Tether’s asking price. The company moved quickly to block the deal.
Tether stated it had “received clear confirmation that these efforts will not proceed,” and warned that attempts to circumvent its official fundraising efforts were “imprudent” and “reckless.”
Another investor, Blockchain Capital, had considered selling shares prior to Tether’s raise but ultimately held off. Tether reportedly did not prevent that potential sale, highlighting that its concern lies specifically with sales that could affect valuation optics during an ongoing funding process.
Despite being a private company, Tether’s structure in the British Virgin Islands and El Salvador gives it flexibility. There are no caps on the number of shareholders for private firms in these jurisdictions, meaning tokenized shares could act like public ones, without the disclosure burdens of a formal IPO.
CoinLaw’s Takeaway
I find Tether’s fundraising play both bold and fascinating. A $500 billion valuation puts them in the league of tech giants, not just crypto firms. But what’s more interesting to me is the shift toward tokenized equity. In my experience watching blockchain evolve, real-world asset tokenization is a game-changer, and if Tether pulls this off, it could set a precedent for how major private firms approach liquidity. Blocking lowball sales shows they’re serious about controlling the narrative and protecting value. But the big question remains: will investors trust a tokenized equity model over traditional exit routes?
