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

Source: CritpoTendencia Original Title: Tether evaluates tokenizing its capital and opens an unprecedented crack 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 arises as the company advances in a share sale aiming to raise up to $20 billion and reach a valuation close to $500 billion, according to Bloomberg.

This is not a formal announcement nor a final decision. But the very fact that Tether is evaluating this alternative marks a turning point: for the first time, one of the largest 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 main funding round. This leaves these investors in an uncomfortable position: a highly profitable company, with rising valuation, but without a clear exit path in the short term.

Tokenization appears to be a potential solution. Converting equity stakes into digital representations would allow for alternative liquidity, without depending on an immediate go-public exit. Bloomberg also notes that the company is evaluating other traditional mechanisms, such as share buybacks, although there is no defined timeline for an eventual IPO.

Hadron: the infrastructure already exists

The idea does not arise in a vacuum. In November 2024, Tether launched Hadron, its unit dedicated to tokenizing real-world assets, enabling issuance of blockchain representations of shares, bonds, and commodities.

Any scheme of tokenized equity could leverage this infrastructure, although cited sources clarify that no decision has been made yet. Still, the move aligns with 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 over tokenization runs parallel to internal tensions. According to the report, Tether intervened to at least stop a shareholder who tried to sell their stake at a steep discount, which would have implied a valuation close to $280 billion, well below the current target.

The company reportedly described those attempts as reckless and imprudent, making clear that it will not allow shortcuts that erode the value narrative it seeks to solidify 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 billion in USDT in circulation and a projection of $15 billion in annual profits, Tether already operates in a different league. A valuation of $500 billion would place it among the most valuable private companies in the world, far above its crypto peers.

However, the markets for tokenized equity remain small. Although the tokenization of real assets exceeds $18 billion globally, it still constitutes a minimal fraction of the traditional financial system. The difference is that, this time, the experiment would not come from the periphery but from one of the ecosystem’s power centers.

The underlying signal

Beyond whether 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 playing a leading role in 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.