What to Know:
Tether aims to raise up to $20B, targeting a massive $500B valuation.
The company may use buybacks or tokenized shares to give future investors liquidity.
Tether launched QVAC Health, an on-device AI wellness platform that unifies data from wearables and apps.
Tether is preparing for one of the biggest private fundraising efforts in the global tech and finance world. According to reports, the company wants to raise up to $20 billion through a share sale that would value it at around $500 billion. If Tether reaches this number, it would stand among the most valuable private companies in the world.
But this massive fundraising round comes with challenges. Tether is now working on ways to ensure new investors feel secure and have options to exit in the future. This includes ideas like buying back shares from investors or even turning its company shares into tokens on a blockchain.
Exploring New Liquidity Options
Tether’s leadership became concerned after learning that some existing shareholders were trying to sell their stakes at a much lower valuation around $280 billion, far below the $500 billion target. One unidentified shareholder was reportedly seeking to sell at least $1 billion worth of stock at this discounted level.
Tether quickly stepped in and blocked the sale, arguing that such actions could damage confidence in its upcoming fundraising. The company said it had “received clear confirmation that these efforts will not proceed” and warned investors not to bypass the official investment process that is being led by top global banks.
Tether also clarified that current shareholders will not be allowed to sell their stakes as part of the main fundraising round. The company wants to bring in fresh “strategic” investors and has reportedly spoken with firms like SoftBank and Ark Invest. However, Tether has not given any timeline for a possible IPO, meaning investors might have to wait years before they can cash out.
Why Buybacks Matter
To avoid liquidity concerns, Tether is considering two solutions:
1. Share Buybacks
This is a common method used by tech and crypto companies. The company buys back shares directly from investors, giving them an early exit before an IPO. Ripple and Revolut have both used this approach in recent years.
2. Tokenizing Tether’s Shares
Tokenization means creating digital versions of real assets so they can be traded more easily on a blockchain. Tokenized assets allow faster transactions and lower costs.
This trend is rapidly growing. Companies like Galaxy Digital, Kraken, and Robinhood have already explored tokenized shares. Tether itself launched a tokenization platform called Hadron in late 2024, which allows users to convert assets like stocks, bonds, and commodities into digital tokens. Even though tokenization is still a small market, with about $18 billion in tokenized real-world assets today, it is expanding quickly.
Tether’s stablecoin USDT remains the backbone of the crypto market, with over $186 billion in circulation. The company expects to generate roughly $15 billion in profit this year. This strong performance is one of the main reasons Tether believes it can achieve such a massive valuation.
Tether Enters Health and AI
Alongside the fundraising news, Tether also announced a new product launch, a privacy-focused health platform powered by on-device AI, called Qvaq Health. The app aims to give users control over their personal health data while using artificial intelligence directly on their device instead of relying on cloud servers. This marks yet another step in Tether’s expansion beyond stablecoins, as it continues to grow into a multi-sector technology company.
Tether CEO Paolo Ardoino says the mission is to give people true control over their digital health life. “You shouldn’t have to choose between using the best hardware and protecting your privacy,” he explained. “QVAC Health breaks the walls between tech ecosystems so users can own the full picture of their health.” According to Tether, future updates will include proactive AI suggestions for improving sleep, recovery, or training routines.
Final Thoughts
Tether’s move to raise $20 billion shows how quickly the stablecoin industry has grown. But it also highlights the challenges of managing a company of this size balancing investor expectations, ensuring liquidity, and maintaining confidence in its valuation.
Whether tokenized shares or buybacks become part of Tether’s final plan remains to be seen. For now, all eyes are on how the company handles this fundraising and how it transforms itself in the process.
Also Read: DTCC Receives Nod from the SEC to Tokenize US Capital Market Assets
