Tether May Tokenize Its Own Stock As $500B Valuation Takes Shape

Source: ETHNews Original Title: Tether May Tokenize Its Own Stock As $500B Valuation Takes Shape Original Link: Tether is considering the tokenization of its own shares as a potential liquidity solution for investors, as the company advances plans for a major private equity raise that could value the stablecoin issuer at around $500 billion.

The discussion comes as Tether seeks to balance aggressive fundraising goals with tight control over its valuation.

Private Share Sale Targets $15–$20 Billion

According to the information provided, Tether is preparing a private placement aimed at raising between $15 billion and $20 billion in exchange for roughly 3% equity in the company. If completed at the intended terms, the transaction would imply a valuation of approximately $500 billion, placing Tether among the most highly valued private firms globally, alongside companies such as SpaceX and OpenAI.

The capital raise is designed to support Tether’s expansion strategy across several business lines, including stablecoins, artificial intelligence, commodity trading, and energy.

Why Liquidity Is Becoming an Issue

Tether’s management is reportedly concerned that allowing existing shareholders to sell shares during the fundraising process could weaken the targeted valuation. To avoid downward pressure, the company is seeking ways to provide liquidity to investors without opening the door to secondary sales at lower prices.

At the same time, a traditional initial public offering is not viewed as an immediate option and may remain years away, prompting Tether to explore alternative structures.

Tokenization Emerges As an Alternative

One of the options under consideration is tokenizing Tether’s stock, converting traditional equity into blockchain-based tokens. This approach would allow ownership interests to be represented digitally, potentially enabling controlled liquidity while preserving the company’s preferred valuation framework.

Tokenization would sit alongside other potential measures, such as share buybacks, giving Tether flexibility in managing investor exits without relying on public markets.

Hadron Platform Provides the Infrastructure

Tether already operates its own tokenization platform, Hadron, which launched in November 2024. The platform is designed to support the digital representation of assets including stocks and commodities, making it a natural foundation for any future equity tokenization initiative.

While no final decision has been announced, the existence of Hadron suggests that the technical infrastructure for stock tokenization is already in place.

A Broader Signal For Capital Markets

Tether’s consideration of stock tokenization reflects a broader shift in how large private companies are thinking about liquidity, fundraising, and investor access. Rather than moving directly toward public listings, firms with blockchain-native capabilities are increasingly exploring on-chain alternatives that align with their existing digital strategies.

If pursued, tokenizing Tether’s shares would represent one of the most high-profile examples yet of equity moving onto blockchain rails, without passing through traditional IPO channels.