Tether considers tokenizing its capital and opens an unprecedented gap between crypto and Wall Street

Source: CritpoTendencia Original Title: Tether evaluates tokenizing its equity and opens an unprecedented rift between crypto and Wall Street Original Link: Tether, the company behind the world’s most used stablecoin, is exploring a move that could redefine the relationship between private markets, blockchain, and global capital: the possible tokenization of its own equity.

The analysis comes as the company advances in a share sale aiming to raise up to $20.000 million and reach a valuation close to $500.000 million, according to Bloomberg.

This is not a formal announcement nor a decision made. But the mere fact that Tether is evaluating this alternative marks a turning point: for the first time, one of the biggest players in the crypto financial system considers using tokenization not for external assets, but for its own equity structure.

Liquidity without IPO: the problem Tether is trying to solve

According to the information, Tether does not plan to allow current shareholders to sell in the primary funding round. That leaves these investors in an awkward position: a highly profitable company, with rising valuation, but without a clear exit route in the short term.

Tokenization appears as a possible solution. Converting equity stakes into digital representations would create alternative liquidity, without relying on an immediate IPO. Bloomberg notes that the company is also evaluating other traditional mechanisms, such as share buybacks, although no specific timeline for an eventual IPO has been set.

Hadron: the infrastructure already exists

The idea does not come out of nowhere. In November 2024, Tether launched Hadron, its unit dedicated to tokenization of real-world assets, enabling the issuance of blockchain representations of shares, bonds, and commodities.

Any scheme of tokenized equity could leverage that infrastructure, although the cited sources clarify that no decision has been made yet. Still, the move fits a broader strategy: Tether not only issues USDT, but seeks to position itself as a provider of native blockchain financial infrastructure.

Internal tensions and implicit price control

The debate about tokenization runs parallel to internal tensions. According to the report, Tether intervened to at least stop a shareholder attempting to sell their stake at a steep discount, which would have implied a valuation close to $280.000 million, well below the current target.

The company reportedly classified those attempts as reckless and imprudent, making clear it will not allow shortcuts that undermine the value narrative it aims to establish in this round. The message is clear: Tether wants to control not only its capital, but also how it is valued.

A private giant in an still immature market

With $186.000 million in USDT in circulation and a projection of $15.000 million in annual profits, Tether already plays in a different league. A valuation of $500.000 million would position it among the most valuable private companies in the world, far above its crypto peers.

However, the markets for tokenized equity are still small. Although real asset tokenization exceeds $18.000 million globally, it remains a tiny fraction of the traditional financial system. The difference is that this time, the experiment would come from one of the ecosystem’s power centers, not the periphery.

The underlying signal

Beyond whether the equity tokenization materializes or not, the message is clear: the borders between private capital, public markets, and blockchain are beginning to blur. Tether not only observes this process; it is considering leading it.

If a company of this size manages to offer equity liquidity via blockchain before an IPO, the precedent could change how the largest companies of the future are financed, valued, and traded.