Tether Eyes a $20 Billion Raise at a $500 Billion Valuation

Tether, the issuer behind the world’s largest stablecoin USDT, is reportedly preparing a massive share sale that could raise up to $20 billion and value the company at around $500 billion, according to Bloomberg. If completed at that level, the deal would place Tether among the most valuable private companies on the planet, not just in crypto but across all industries.

Why Tokenizing Tether’s Equity Is on the Table

One option under active consideration is tokenized equity. Instead of waiting for a public listing, investors could hold blockchain-based representations of their ownership stake. In theory, that creates a secondary liquidity path without the company formally going public.

According to people familiar with the discussions, Tether is also weighing more traditional approaches such as buybacks. Nothing has been finalized, but the fact that tokenization is being considered at this scale signals how seriously Tether views onchain capital structures.

Tokenized equity would allow ownership to exist as a digital asset, transferable under defined rules, potentially expanding access while keeping control over the cap table. For a company operating at the intersection of crypto infrastructure and global finance, the logic is obvious.

Hadron Lays the Groundwork for Tokenized Shares

This isn’t happening in a vacuum. In November 2024, Tether launched Hadron, its dedicated tokenization platform designed to mint blockchain-based versions of real-world assets such as stocks, bonds, and commodities.

Any future tokenized equity model could be built directly on this framework. Hadron already provides the tooling needed to manage issuance, compliance logic, and asset representation onchain. What remains undecided is whether Tether wants to become the flagship example of its own tokenization technology.

If it does, Tether wouldn’t just be issuing tokenized assets. It would be tokenizing itself.

Secondary Sale Tensions Reveal Valuation Sensitivity

The timing of these discussions is telling. Bloomberg reports that Tether recently intervened to block at least one existing shareholder from attempting a secondary sale at a steep discount. That deal would have implied a valuation of roughly $280 billion, far below the $500 billion target for the upcoming raise.

Tether reportedly described those efforts as reckless and confirmed that they would not proceed. The message was clear. The company wants full control over how its equity is priced, distributed, and monetized.

Tokenization, if executed, would give Tether a structured way to manage secondary liquidity without opening the door to uncontrolled price discovery.

A Giant in Crypto, a Newcomer in Equity Innovation

Tether’s scale gives this conversation real weight. USDT has around $186 billion in circulation, making it the dominant stablecoin globally. The company has also forecast profits of roughly $15 billion this year, driven by interest income on reserves.

At a $500 billion valuation, Tether would sit far above most crypto-native firms and alongside the largest private companies in the world. Previous reports suggest it has held talks with major strategic investors, including SoftBank and Ark Invest, reinforcing the seriousness of the fundraising effort.

What This Means for Tokenized Equity Markets

Tokenized equity is still a niche concept, even in 2025. While real-world asset tokenization has grown to more than $18 billion in circulating value, it remains a tiny slice of global capital markets.

That’s why Tether’s exploration matters. If a firm of this size chooses to tokenize its own shares, it would instantly become the most high-profile use case in the sector. It would also force regulators, investors, and traditional markets to confront a question they’ve largely avoided.

What happens when one of the world’s most valuable private companies decides its equity belongs onchain?

No decision has been made yet. But the fact that Tether is even considering it says a lot about where capital markets may be heading next.