Tether’s bid to secure one of the largest private fundraising rounds ever attempted is already creating tension behind the scenes.
As the company prepares a stock offering designed to attract up to $20 billion, it has been forced to intervene after discovering that some early investors were exploring private sales at sharply discounted valuations.
- Tether blocked discounted share-sale attempts to protect its upcoming $20B raise.
- Executives are weighing buybacks and tokenized equity for post-raise liquidity.
- Some investors tried to sell at valuations far below Tether’s $500B target.
- Tokenization’s growing adoption could shape how Tether handles future equity trading.
Sources familiar with the matter say one investor attempted to unload more than $1 billion worth of shares at a valuation around $280 billion — far below the $500 billion figure Tether intends to present in its official raise. The company quickly stepped in, warning that off-market sales could distort pricing expectations and weaken negotiations with major investment banks leading the deal.
In a statement confirming that these attempts had been halted, Tether emphasized that any effort to bypass the formal process would be reckless. Internally, the episode has heightened awareness of the liquidity constraints faced by long-time shareholders, particularly since Tether has not outlined when — or if — an IPO might eventually occur.
Company Explores Post-Raise Liquidity Solutions
With existing investors unable to sell shares during the primary fundraising round, executives are now examining ways to support future exits once the deal is complete. One approach under review is a structured buyback program, which would allow the company to repurchase shares without disrupting its valuation narrative.
Another option is the tokenization of Tether’s stock, which would create a compliant digital representation of equity that could trade on approved blockchain infrastructure. This aligns naturally with Tether’s recent push into tokenization through its Hadron platform, which already supports digital versions of traditional assets such as bonds, commodities, and corporate equity.
A High-Profit Business Behind an Ambitious Valuation
Part of what fuels Tether’s confidence is its financial performance. The company’s flagship stablecoin, USDT, has expanded to roughly $186 billion in circulation, while internal estimates suggest annual profits could reach about $15 billion. Those figures have encouraged investors to take the $500 billion valuation target seriously, even if some attempted private deals implied a far lower number.
Not every shareholder exploring liquidity faced resistance. Blockchain Capital considered selling a small portion of its stake earlier in the year but ultimately decided against it. According to someone familiar with the discussions, Tether raised no objections until investors began seeking buyers at aggressively discounted valuations.
Tokenization Trend Gains Momentum Across Finance
The idea of digitizing equity is gathering momentum well beyond Tether. Multiple firms — including Galaxy Digital, Kraken, and Robinhood — have introduced tokenized share models, allowing stocks to trade on networks like Solana. Although the tokenized real-world asset market remains relatively small at around $18 billion, it has grown rapidly this year, giving companies a new framework for building secondary markets around private equity.
Liquidity pressure is also prompting action in more traditional fintech circles. Ripple has spent years buying back more than a quarter of its outstanding stock, while Revolut recently offered former employees a discounted repurchase opportunity following its $75 billion valuation round. These examples illustrate the broader shift toward flexible exit mechanisms in private markets, a trend that Tether is now evaluating closely.
A Pivotal Moment for Tether’s Evolution
As the company continues courting strategic investors — reportedly including major global institutions — the path it chooses after the fundraising round may define its transition from a dominant crypto enterprise into one of the world’s most valuable privately held firms. Whether Tether ultimately relies on buybacks, tokenized equity, or a hybrid solution, the internal debate underscores a central challenge: maintaining a towering valuation while ensuring shareholders are not trapped without an eventual exit route.
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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/tether-eyes-buybacks-and-tokenized-equity-after-halting-off-market-share-sales/