Tether May Tokenize Equity to Ensure Investor Liquidity

Tether — the company behind USDt — is exploring tokenized investor equity and share buybacks as it targets a massive $500B valuation.

▪ Tether reportedly blocked an existing shareholder from selling a $1B stake as it prepares to raise $20B for a 3% stake.

▪ To prevent liquidity issues for investors, Tether is considering onchain equity tokenization so shares can become more transferable, fractionalized, and usable as collateral in DeFi.

▪ Tokenized equity = easier liquidity + transparent ownership + collateral utility.

▪ This move aligns with the rapid rise of RWA tokenization across US financial markets.

▪ The SEC just approved DTCC to tokenize stocks, ETFs, and bonds — signaling a major shift toward onchain financial infrastructure.

▪ On the same day, J.P. Morgan facilitated a $50M tokenized bond issuance for Galaxy Digital.

▪ Coinbase is expected to reveal new tokenized stock + prediction market products soon.

🔹 Nearly $700M in public equities are already tokenized — and the number is rising fast.

Final Takeaway

Tokenizing Tether equity could unlock massive liquidity, attract institutional investors, and accelerate the global shift toward onchain, transparent, and frictionless finance.

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