Executives at the stablecoin firm Tether are weighing tokenization as they look for new ways to enhance liquidity around a major equity transaction.
Tether prepares liquidity options around multibillion-dollar share sale
Tether Holdings SA, the well-known stablecoin issuer, is seeking to raise up to $20 billion in a planned stock sale and is already working on post-deal liquidity strategies for investors. However, the company has also stepped in to stop some existing shareholders from offloading their stakes, prompting fresh scrutiny of how future trading in the shares will be handled.
According to people with knowledge of the matter, Tether executives are examining several investor liquidity measures that could support trading once the offering is completed. Moreover, one focus is on ensuring that both new and current investors have avenues to adjust positions without creating disorderly selling pressure.
Exploring blockchain-based share structures and buybacks
People familiar with the internal discussions say the options under review include potential buybacks and tokenization to manage the capital structure more flexibly. In parallel, the issuer is also considering blockchain share representation, which would see the company’s equity digitally recorded on a distributed ledger after the transaction closes.
Under this scenario, the firm would pursue tether stock tokenization so that shares can be represented as digital tokens on a blockchain once the deal is finalized, according to the same sources. That said, these plans remain exploratory and may change as market conditions evolve.
The broader effort follows a recent Tether shareholder intervention, in which the company acted to prevent some holders from selling down their stakes ahead of the planned equity raise. Moreover, that move underscored how stablecoin issuer liquidity concerns are increasingly intersecting with traditional capital markets.
Next steps after the December 2025 timetable
While no final decision has been announced, the ongoing review of tether share sale mechanics suggests management wants a clear framework in place before secondary trading begins. However, any formal launch of new structures would likely follow only after the main stock deal is completed and regulatory feedback is incorporated.
The discussions, which were ongoing as of December 12, 2025, highlight how token-based equity models are gaining traction among digital asset players.
In that context, a full tether tokenization of its equity float could mark a significant step in merging traditional share ownership with on-chain infrastructure.
In summary, Tether is seeking to raise substantial capital while exploring digital tools such as buybacks, tokenized shares, and blockchain recording to support liquidity, signaling a potential new phase in the convergence of equity markets and crypto technology.
Source: https://en.cryptonomist.ch/2025/12/12/tether-tokenization-liquidity-stock-sale/
