The USDT stablecoin issuer, Tether, is exploring new liquidity options for shareholders, including digitally representing its shares on a blockchain, after stepping in to limit certain stock sales ahead of closing its capital raise.
Tether Holdings SA, the company behind the world’s largest stablecoin, is assessing the possibility of tokenizing its corporate shares once it completes its ongoing private share sale. The fundraising round could reach up to $20 billion, positioning Tether among the most highly valued private companies in the digital-asset landscape.
As the share sale approached its final phase, the company intervened to halt certain secondary-market transactions initiated by existing shareholders attempting to sell their stakes at discounted prices. This move highlighted ongoing challenges around investor liquidity and the company’s efforts to maintain valuation consistency throughout the financing process.
It also triggered broader internal discussions about how Tether could offer more structured and transparent liquidity options once the deal closes.
A potential shift toward blockchain-based corporate ownership
One of the main ideas under consideration is the tokenization of Tether’s shares. Through tokenization, equity ownership would be represented as digital tokens on a blockchain, making it possible for investors to trade them more efficiently on decentralized or regulated digital marketplaces. For Tether—a company whose core business revolves around digital financial infrastructure—tokenizing part of its corporate structure would reinforce its identity as a technologically driven institution.
The initiative could also democratize access to Tether’s equity by enabling controlled, blockchain-based trading that adheres to regulatory requirements while enhancing liquidity for investors. Alongside tokenization, the company is contemplating traditional measures such as share buyback programs to support price stability and offer orderly exit opportunities.
Tether’s exploration comes at a time when tokenized financial instruments are gaining momentum globally. A growing number of firms in both crypto and traditional finance are experimenting with digital representations of equity, bonds, and other securities as a way to streamline settlement, reduce operational costs, and expand investor participation.
For Tether, whose influence already permeates global crypto markets, adopting tokenized equity could signal a transformative step not only for the company but also for the evolution of private-market ownership models in the blockchain era.
