The world's largest stablecoin issuer is exploring groundbreaking territory by considering tokenizing its equity as part of a massive fundraising effort. Tether's proposed $500 billion valuation would place it among the world's most valuable companies, surpassing financial giants and raising questions about the intersection of traditional finance and blockchain innovation.
Tether, the company behind the dominant USDT stablecoin with over $140 billion in circulation, is reportedly planning an unprecedented $20 billion fundraising round that could value the firm at a staggering $500 billion, according to Bloomberg sources familiar with the matter.
In a move that embodies the crypto industry's disruptive ethos, Tether is exploring the possibility of tokenizing its own equity rather than pursuing traditional stock sales. This approach would allow the stablecoin giant to maintain its private status while tapping into the liquidity advantages of blockchain-based securities. The company has reportedly taken steps to prevent conventional equity sales, signaling a strong preference for remaining outside public markets.
The proposed valuation is particularly striking when contextualized against traditional finance. At $500 billion, Tether would rival the market capitalizations of JPMorgan Chase and Visa, despite operating with a fraction of their workforce and regulatory oversight. This valuation reflects both the company's remarkable profitability—Tether reportedly generated over $10 billion in net profits in 2023—and the growing institutional appetite for exposure to stablecoin infrastructure.
Tether's business model centers on maintaining a 1:1 peg between USDT and the U.S. dollar, primarily through investments in U.S. Treasury bills and other reserve assets. This conservative investment strategy has transformed the company into one of the largest holders of U.S. government debt, while generating substantial interest income as yields have risen.
The tokenized equity concept would represent a significant test case for security token adoption at scale. By leveraging blockchain rails for equity distribution, Tether could create a more liquid secondary market while maintaining greater control over shareholder composition compared to traditional public listings.
However, the plan faces considerable regulatory uncertainty. Security token frameworks remain underdeveloped in most jurisdictions, and Tether's history of regulatory scrutiny—including a $41 million settlement with the CFTC in 2021—could complicate approval processes. Nevertheless, if successful, this fundraising approach could establish a new blueprint for how crypto-native companies access capital while staying true to blockchain principles.