Tether may tokenize equity to ensure liquidity for investors: Report

The company is considering multiple paths to ensure liquidity for new investors eyeing a stake in the private stablecoin business.

Tether, the stablecoin company that issues the USDt (USDT) dollar-pegged token, is considering tokenizing investor equity and share buybacks to offer liquidity for investors as it seeks a $500 billion valuation.

Bloomberg reported on Friday, citing a source familiar with the matter, that Tether recently stopped an existing shareholder from selling their stake as the company is in talks to raise $20 billion for a 3% stake in the stablecoin’s issuer business.

The investor sought to sell a $1 billion stake that valued Tether at $280 billion, Bloomberg reported. In response, Tether plans to offer investor liquidity through tokenization or share buybacks after the funding round closes.

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