Tether Explores Stock Tokenization Amidst Major Fundraising Efforts
- Tether is considering tokenizing its stock after completing a share sale to provide liquidity and facilitate buybacks.
- The company aims to raise $20 billion at a $500 billion valuation, aligning it with top private firms like OpenAI and SpaceX.
- An unidentified shareholder attempted to sell $1 billion worth of equity at a lower $280 billion valuation, raising concerns about fundraising impact.
- Stablecoin issuer Tether’s USDT is backed by reserves recently valued at approximately $186 billion, reflecting a $46 billion growth over the past year.
- Potential investors include SoftBank and Ark Investment Management, although no public offering timeline has been set.
Tether’s strategic move to potentially tokenize its stock follows efforts to prevent unauthorized equity sales that could undermine its ambitious fundraising goals. The company’s valuation target places it among the world’s most valuable private entities, underscoring its significant market position in the stablecoin sector.
(Source)
