Tether evaluates equity tokenization, opening an unprecedented gap between cryptocurrencies and Wall Street

Source: CritpoTendencia Original Title: Tether evaluates tokenizing its capital and opens an unprecedented rift between crypto and Wall Street Original Link: Tether, the company behind the world’s most widely used stablecoin, is exploring an initiative that could redefine private markets, blockchain, and global capital relationships: possible tokenization of its own equity.

This analysis emerges as the company advances stock sales, seeking to raise up to $20 billion and reaching a valuation close to $500 billion, according to Bloomberg.

This is not an official announcement nor a decision that has been made. But the mere fact that Tether is evaluating this option marks a turning point: for the first time, one of the largest participants in the crypto financial system is considering using tokenization, not for external assets, but for its own equity structure.

Liquidity without IPO: the problem Tether is trying to solve

According to information, Tether does not plan to allow existing shareholders to sell during the main funding round. This puts those investors in a tricky position: a highly profitable company with a steadily rising valuation, but without a clear exit route in the short term.

Tokenization emerges as a potential solution. Converting equity into digital representations would allow the creation of alternative liquidity without relying on going public immediately. Bloomberg also notes that the company is evaluating other traditional mechanisms, such as share buybacks, although there is no clear timeline for an eventual IPO.

Hadron: Infrastructure is already in place

This idea did not come out of nowhere. In November 2024, Tether launched Hadron, its division dedicated to the tokenization of real-world assets, allowing blockchain representations of stocks, bonds, and commodities.

Any equity tokenization scheme can rely on this infrastructure, although the cited sources clarify that no final decision has been made. Nevertheless, this move aligns with a broader strategy: Tether is not only issuing USDT but also seeks to position itself as a provider of blockchain-native financial infrastructure.

Internal tensions and implicit price control

The debate over tokenization runs parallel to internal tensions. According to reports, Tether has intervened to prevent at least one shareholder attempting to sell their stake at a significant discount, which would imply a valuation close to $28 billion, well below the current target.

The company describes these attempts as “reckless” and “ill-advised,” clearly stating it will not allow shortcuts that erode the valuation narrative it seeks to solidify in this funding round. The message is clear: Tether aims not only to control its capital but also to control how its valuation is shaped.

A giant in an still-immature market

With $18.6 billion in USDT circulation and an annual profit forecast of $1.5 billion, Tether is competing in various alliances. A $50 billion valuation places it among the most valuable private companies globally, far above its crypto peers.

However, the equity tokenization market remains small. While the tokenization of real-world assets exceeds $18 billion globally, it is still a tiny fraction of the traditional financial system. The difference this time is that the experiment will not come from the fringe but from one of the ecosystem’s power centers.

Fundamental signal

Whether equity tokenization materializes concretely or not, the message is clear: the boundaries between private capital, public markets, and blockchain are beginning to blur. Tether is not only observing this process; it is considering becoming a main actor.

If a company of this scale can provide equity liquidity via blockchain before an IPO, this precedent could change how large companies finance, value, and conduct transactions in the future.