Tether is exploring a potential share sale that could value the company at as much as $500 billion, part of a broader push into tokenized equity that could change how ownership and liquidity are handled in capital markets.
USDT, Tether’s flagship stablecoin, has nearly $186 billion in circulation. Tether says USDT is backed 1:1 by reserves, and the company has taken steps in recent months — including minting an additional $1 billion USDT — that managers present as signals of confidence amid ongoing scrutiny over reserve transparency.
Tokenized equity uses blockchain-based tokens to represent shares, simplifying some aspects of traditional public offerings and secondary trading. Tether launched Hadron, its tokenization platform, in late 2024 to convert assets into digital forms and facilitate distribution and pricing in tokenized markets.
For startups and Web3 firms, tokenized equity may offer new routes to liquidity, tighter control over pricing and distribution, and reduced counterparty risk. Finance leaders are expected to weigh on-chain mechanisms alongside existing capital strategies as the market and regulatory frameworks evolve.
Regulatory clarity remains a central challenge. Governments and regulators are still defining how tokenized securities should be treated, and compliance will be a key determinant of which firms can scale tokenized offerings and access broader investor bases.
Tether’s position combines a large stablecoin footprint with a tokenization effort, potentially creating synergies for entities seeking crypto-based liquidity solutions. Market observers say the outcome will depend on regulatory developments, market adoption, and continued transparency around reserves and operations.
The company’s move into tokenized equity could influence how liquidity and ownership are managed across traditional and digital markets. Investors, startups and institutions are closely watching developments as the sector navigates regulatory and operational hurdles.
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