Tether Halts Secondary Share Sales Ahead of Massive $20B Funding Round at $500B Valuation

Tether just slammed the brakes on secondary market trading of its private shares. The move comes as the stablecoin giant prepares for a monumental capital raise that could reshape the crypto landscape.

The $500 Billion Question

Forget unicorns—Tether is aiming for a valuation that dwarfs most traditional finance institutions. The planned $20 billion funding round at a half-trillion-dollar valuation isn't just ambitious; it's a direct challenge to the entire legacy financial system. This isn't growth—it's financial terraforming.

Why Stop the Secondary Market?

Halting share sales before a funding round is classic corporate maneuvering. It prevents valuation leaks, controls the narrative, and ensures the company—not early investors—captures the premium from the insane market demand. Call it financial discipline or call it ruthless control—it works.

The Stablecoin That Ate Finance

Tether's move signals one thing: confidence. Absolute, unshakable confidence that their position as the liquidity backbone of crypto is worth more than most national economies. While traditional banks debate fractional reserves, Tether's building a financial empire on digital dollars that never close.

One cynical finance veteran quipped, 'They're raising more money than some countries' GDP while backing it with assets they won't fully disclose—only in crypto does this not just work, but get celebrated.'

The funding round, if successful, wouldn't just fill Tether's war chest—it would permanently alter the power dynamics between traditional finance and the digital asset ecosystem. The message is clear: the future of money isn't being debated in boardrooms; it's being built in real-time, one blockchain transaction at a time.

Tether stops discounted exits to protect fundraising

“We have received clear confirmation that these efforts will not proceed,” Tether allegedly said in response to questions.

In a separate statement, the company added, “It WOULD be imprudent, and indeed reckless, for any investor to attempt to circumvent the established process led by Tier 1 Global Investment Banks or to engage with parties not authorized by Tether’s management.”

According to Bloomberg, Tether’s management was afraid that early exits will weaken confidence in its $500 billion raise, and executives are not planning to allow existing shareholders to sell as part of the main round.

One shareholder, whose identity Bloomberg News could not determine, sought to sell at least $1 billion of stock, people familiar with the matter said. Materials reviewed by Bloomberg put Tether at $280 billion in that proposal. It was not clear whether that figure included any new capital raised by the company.

Another investor, Blockchain Capital, weighed selling shares before the fundraising plans became public but later chose not to proceed, a person with knowledge of the matter said. Leadership at Tether did not try to stop Blockchain Capital from selling, the person added.

The company has said it wants strategic investors in the deal and has held talks with SoftBank Group Corp. and Ark Investment Management LLC. No timeline has been set for an initial public offering, meaning investors may have to wait years for a public-market exit.

Tether weighs buybacks and tokenized shares for liquidity

With no IPO clock running, Tether is exploring other ways to offer liquidity after the raise, like tokenization.

The idea is already being tested elsewhere, like Mike Novogratz’s Galaxy Digital, introduced a tokenized version of its Nasdaq-listed shares in September that trade on the solana blockchain. Similar efforts have come from Kraken and Robinhood Markets Inc.

Tether has its own footprint in this area. In November 2024, the company launched a tokenization business called Hadron. The platform lets users convert assets into blockchain-based representations, including stocks, bonds, and commodities.

The market is still small. The total value of real-world assets traded as tokens has roughly tripled this year but stands at $18 billion, a level comparable to the least valuable company in the Nasdaq 100 Index.

Buybacks offer another option. In crypto and beyond, companies have used repurchases to give early backers and staff a path to cash out before an IPO. Ripple, which raised $500 million in November from investors including Citadel Securities LLC and Fortress Investment Group, said it has bought back more than 25% of its outstanding shares in recent years.

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