Tether Plans a $20 Billion Stock Sale to Explore Tokenized Equity Opportunities

Stablecoin issuer Tether is preparing to raise up to $20 billion through a stock offering, aiming for a company valuation of $500 billion. The firm is evaluating potential uses of the raised funds, including corporate buybacks and launching tokenized equity on a blockchain.

Insiders indicate that Tether is assessing multiple exit strategies for its shareholders following the fundraising.

Tether Alerts Shareholders on Formal Procedures

The decision for this latest equity sale comes as Tether seeks to prevent at least one current investor from selling shares at a valuation near $280 billionsignificantly below the firms $500 billion target. Tether confirmed to Bloomberg that attempts to proceed outside the formal process would not be allowed.

The company has cautioned investors against bypassing the official procedures managed by global investment banks. Over the past year, Tether has significantly increased its USDT supply, adding $46 billion to its market capitalization, which now stands at $186 billion. The firm projects profits of $15 billion for the year.

Sources note Tethers concern that discounted secondary sales could undermine confidence in the main capital raise. Current plans do not allow existing shareholders to sell as part of this primary offering. Discussions about raising $20 billion have been ongoing since September 2025, when the company compared its valuation to OpenAI and SpaceX.

Interest in Tokenized Shares

Tether is considering issuing tokenized equity, following a trend adopted by companies like Galaxy Digital, Kraken, and Robinhood. In November 2024, Tether launched Hadron, a platform designed to support digital asset tokenization across sectors. While still nascent, the market for real-world asset tokens reached a total valuation of $18 billion this year.

Crypto startups are also increasingly using buybacks to offer liquidity. For instance, Ripple has repurchased over a quarter of its outstanding shares in recent years.

Sources:

• Tether Plans a $20 Billion Stock Sale to Explore Tokenized Equity