Tether Explores Tokenized Stock Structure Amid Massive Fundraising Push

Tether is weighing whether to turn its own shares into blockchain-based tokens after completing a massive fundraising round that could bring in up to $20 billion and value the company at around $500 billion, according to Bloomberg.

The stablecoin issuer isn’t planning to let early shareholders sell stock into the raise, creating pressure to find other ways for investors to access liquidity before any future IPO. Tokenizing equity is one option executives are reportedly evaluating, alongside more traditional avenues like buybacks, according to people familiar with the discussions.

The idea would build on Hadron – Tether’s tokenization division launched in late 2024 – which already supports blockchain versions of commodities, bonds, and equities. No decision has been made, but the company’s existing infrastructure makes a tokenized share model technically feasible.

USDT remains the dominant stablecoin globally, with about $186 billion in circulation and an expected $15 billion in profit this year. The Block has requested comment from the company.

Share Sale Tensions Surface

Talk of tokenized equity comes amid friction around secondary sales. According to Bloomberg, Tether intervened after a shareholder attempted to sell stock privately at a valuation near $280 billion – far below the firm’s desired price tag for the upcoming raise. Tether reportedly shut down the attempt, calling the move reckless and outside its formal capital-raising process.

A $500B Valuation Would Rewrite the Crypto Landscape

If Tether reaches its target valuation, it would become one of the world’s most valuable private companies, dwarfing nearly all crypto-native firms. Reports have indicated the firm has been in discussions with major investors, including SoftBank and ARK Invest.

Tokenized equity markets, meanwhile, remain small but steadily growing in 2025. Real-world asset tokenization has expanded to more than $18 billion in circulating value, according to rwa.xyz, though the space is still negligible relative to global financial markets.