Tether Explores Tokenized Equity Amid $20B Fundraising Plan

Tether is exploring new ways to give investors more flexibility in holding and trading its shares. Reportedly, executives are weighing the idea of turning some of its equity into digital tokens. 

This comes as a stablecoin issuer is preparing to raise $20 billion, which could value the company at $500 billion. 

Tether Looms Tokenized Shares to Offer Investor Exit Options

Currently, Tether does not plan to allow existing shareholders to participate in the main fundraising round. This means that these investors may need alternative ways to access liquidity until a public listing occurs. 

This limitation has prompted the company to explore other options for providing investors with exit opportunities. 

Tether is now looking to tokenize its shares as it will allow investors to hold blockchain-based representations of their shares. At the same time, tokenizing the company’s shares would make it easier for them to trade or transfer while maintaining security and transparency. 

Alongside the equity tokenization, Tether is also considering traditional exit mechanisms, such as buybacks. This will ensure that investors have clear options for cashing out after the fundraising concludes. 

Although tokenized equity remains a niche market, it is steadily gaining traction. In 2025, several firms, both in finance and crypto, have experimented with blockchain-based representations of traditional assets. 

Overall, more than $18 billion worth of real-world assets have been tokenized, but this is still only a small part of the global market.

Tether Could Reach $500B Valuation with $20B Fundraise

If successful, the $20 billion funding round would give the firm a valuation of around $500 billion. Executives say it would make Tether one of the most valuable private companies in the world. 

Reports indicated that the stablecoin issuer has held talks with strategic investors, including SoftBank and Ark Invest, as part of its fundraising efforts. 

Furthermore, Tether is not new to the world of tokenized assets. In November 2024, the company launched Hadron, a platform that lets users create digital versions of stocks, bonds, and commodities. Any future plan to tokenize its shares would likely use this platform, though no final decision has been made.

Tether Blocks Discounted Stock Sale While Posting $10B Profit

Talks about the potential tokenized shares come as Tether works to manage its shareholders. Reports say the company recently stopped at least one investor from selling stock at a big discount.

This sale would have valued the company at $280 billion, well below its $500 billion fundraising target. In a recent interview, Tether’s spokesperson described these attempts as imprudent and reckless.

Meanwhile, in its Q3 financial reports, Tether earned a net profit of more than $10 billion in the first nine months of 2025. This makes it one of the most profitable private companies in the world. 

Its USDT also remains the largest stablecoin globally, with about $186 billion in circulation. The dollar-pegged currency now serves over 500 million users around the globe.