Tether is evaluating whether to introduce a tokenized version of its equity following a planned private share sale that could raise up to twenty billion dollars and imply a valuation near five hundred billion dollars. The consideration reflects growing interest among large private firms in using blockchain based structures to address liquidity constraints ahead of a potential public listing. With no confirmed timeline for an initial public offering, tokenized equity is being assessed as one possible mechanism that would allow investors to hold digital representations of ownership while remaining within a private company framework. The approach would place equity alongside other real world assets that are increasingly being represented on chain as part of broader financial infrastructure modernization efforts.
The discussion comes as the company explores how to manage investor liquidity following the fundraising round. Existing shareholders are not expected to sell into the primary raise, increasing pressure to identify alternative exit paths. Options under review reportedly include traditional share buybacks alongside digital representations of equity stakes. Any tokenized structure would likely leverage internal tokenization capabilities introduced in recent years, which were designed to support blockchain based issuance of traditional financial instruments. While no final decision has been made, the evaluation highlights how tokenization is being considered not only for bonds and commodities but also for corporate ownership in large scale private enterprises.
If pursued, tokenized equity would place the firm among a small but growing group testing blockchain as a tool for corporate finance rather than purely transactional use cases. Despite increasing experimentation, tokenized equity markets remain limited in size and face unresolved questions around regulatory treatment, investor protections, and secondary market access. The move would nevertheless signal confidence in tokenization as a credible layer for capital markets innovation. As private valuations rise and timelines to public listings extend, digital representations of ownership are gaining attention as a way to bridge liquidity gaps while maintaining centralized control over issuance and governance.
