Tether Weighs Tokenized Equity for Investor Liquidity

Tether seeks to raise up to $20 billion through a share sale. The firm is exploring tokenizing its equity to ensure liquidity for investors.

Tether, the leading stablecoin issuer, is seeking to raise to $20 billion in a stock sale. This deal would effectively put the company’s value somewhere around $500 billion. However, the firm is looking at ways to provide liquidity to investors post-deal.

Tokenization Plans Follow Buyback Consideration

According to Bloomberg, Tether executives are considering a number of options. These include purchasing back shares. They are also investigating having the company’s shares digitally represented in a blockchain. This approach is called tokenization. This would therefore provide an exit path for private investments.

The stablecoin issuer recently stepped in to stop some sales from taking place. This action was a block to at least one existing shareholder. The shareholder was trying to sell his or her stake at a heavy discount. This discount would have valued Tether at $280 billion.

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Tether management was a source of concern. They felt that the immediate discounted sales might disrupt their important fundraising efforts. The company is going for a high valuation. Consequently, management is focused on winning the price story.

To consider the need for future liquidity for investors, options are being considered. Tokenization of shares is a major option. This approach means digitally representing the company’s shares on a blockchain. This potentially provides the secondary trading of illiquid private investments.

Another major option being considered is stock buybacks. This approach would utilize company funds. The objective is to buy back the stocks of early investors and employees.

Hadron Platform Drives Tokenization Strategy

Tether has been very active in the overall tokenization space. The company introduced its own platform for this purpose. The platform is called Hadron, which was launched in November 2024.

Hadron simplifies the process of tokenizing different real-world assets (RWA). This includes stocks, bonds and commodities. Also, the platform offers important tools. These tools help with the issuance of assets and compliance.

The company has been engaging in strategic partnerships to drive this strategy. For example, in November 2025, Hadron entered a strategic alliance. This was with the ETF provider KraneShares. This also included the digital securities platform Bitfinex Securities.

This collaboration is intended to boost the tokenization of capital markets. This is inclusive of ETFs and global stocks. The concerted effort aims at unlocking a multi-trillion-dollar tokenized securities market.

Tether and its partners have a great vision for the market. They seek to open up traditionally exclusive investment products to a global audience. This use of tokenization can save on transaction costs. In addition, it will significantly improve the settlement times across the markets. The possible tokenization of its own equity exhibits internal commitment.

Ultimately, Tether’s idea of tokenized equity demonstrates its effort to increase liquidity for investors while serving an ambitious valuation goal. By looking into the use of shares and buybacks on a blockchain, the purpose of the firm is to control stability in the market. This approach is in line with its overall tokenization approach, which reinforces its vision of modernizing capital markets with its growing Hadron ecosystem.

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