Tether to Raise $20 Billion, Eyeing $500 Billion Valuation.

• Tether to raise up $20 billion in a private stock deal, that could boost it total valuation to $500 billion

• Tether is seeking to bring strategic partners including SoftBank Group and Ark Investment Management.

Tether seeks to raise $20 billion

Tether is pushing forward with plans to raise as much as $20 billion in a private stock deal that would value the company at roughly $500 billion. According to Bloomberg, the stablecoin issuer has halted all secondary share sales after discovering that some early investors attempted to sell their stakes at deep discounts.

Executives viewed these discounted exits as a direct threat to the fundraising effort and moved quickly to stop them.

One investor attempted to sell at least $1 billion worth of stock in a deal that would have valued Tether at about $280 billion. Management intervened to block the transaction, stating that it would have undermined confidence in the company’s target valuation.

Tether said it has received confirmation that these unauthorized efforts will not proceed and emphasized that all investor discussions must go through its approved process led by Tier 1 global investment banks.

Another investor, Blockchain Capital, considered selling shares but ultimately decided against it. Tether did not attempt to block that potential sale, as it did not progress into an active transaction.

Fundraising Targets Strategic Investors

Tether is seeking to bring in strategic partners as part of its raise and has held discussions with major names including SoftBank Group and Ark Investment Management.

There is currently no timeline for an initial public offering, meaning private investors could face a long wait for a traditional exit.

The lack of a near term IPO has increased pressure on Tether to design new liquidity pathways for shareholders who participate in the raise.

Executives want to ensure that investors will not be locked in indefinitely, especially as the company pursues one of the largest private raises in global tech and finance history.

Tether Explores Buybacks and Tokenized Shares

With no public listing on the horizon, Tether is examining post raise liquidity mechanisms such as share buybacks and tokenizing its equity. Tokenized shares would allow investors to trade their stakes through blockchain rails rather than traditional markets, offering a more flexible exit path.

This model is already gaining traction. Galaxy Digital launched a tokenized version of its Nasdaq shares on the Solana blockchain in September, and Kraken and Robinhood have explored similar approaches. Tether itself has a foothold in this space through its tokenization platform Hadron, launched in November 2024. Hadron enables the conversion of traditional assets like stocks, bonds, and commodities into blockchain based tokens.

The real world asset tokenization market remains small at about $18 billion, but it has tripled in size this year and is drawing attention from major financial firms. For Tether, equity tokenization could serve both as a liquidity solution and a showcase for its growing influence in digital asset infrastructure.

Buybacks are also under consideration. This approach is common in crypto. Ripple, for example, has repurchased more than 25 percent of its outstanding shares in recent years and raised $500 million from major investors including Citadel Securities and Fortress Investment Group in November.

Why Tether Is Protecting Its Valuation

Tether’s management reportedly fears that discounted share sales could give the market the impression that insiders lack confidence in the upcoming raise. Allowing early investors to exit cheaply while the company is seeking a $500 billion valuation could weaken negotiations with new backers and reduce momentum behind the deal.

By halting secondary sales and tightening control over investor communications, Tether is signaling that it intends to protect the integrity of the fundraising round. Executives also emphasized that attempts to bypass official channels would be considered reckless and against the interests of existing holders.

A High Stakes Raise for the World’s Largest Stablecoin Issuer

Tether remains the most profitable company in crypto, generating billions in annual net income through its USDT reserves and investment portfolio.

A successful raise at a $500 billion valuation would rank it among the world’s most valuable private companies and place it above many global financial institutions.

The company wants investors who support its long term vision, including expansions into tokenization, emerging markets, and financial infrastructure.

Whether the raise succeeds at its ambitious valuation will depend on market conditions, investor appetite, and Tether’s ability to manage liquidity expectations without the near term prospect of going public.