Tether Holdings, issuer of the world’s largest stablecoin USDT, is considering the tokenization of its own equity following the completion of a funding round of up to USD 20 billion. The El Salvador-based company is in discussions with investors at an estimated valuation of around USD 500 billion.
Such a valuation would place Tether on par with private technology giants such as SpaceX and OpenAI. The planned tokenization of shares is intended to provide investors with additional liquidity after Tether ruled out a near-term initial public offering. CEO Paolo Ardoino confirmed negotiations with selected institutional investors. Cantor Fitzgerald, which custodies a significant portion of Tether’s US Treasury holdings, is expected to act as advisor. The funding round would cover only three percent of the company’s equity. Tether recently blocked attempts by existing shareholders to sell stakes at a significant discount - a move that could have undermined the targeted valuation.
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Record profitability drives valuation
The exceptional valuation is underpinned by unprecedented profitability in the stablecoin sector. Tether reported net income of USD 4.9 billion for the second quarter of 2025, bringing profits for the first six months of the year to USD 5.7 billion. CEO Ardoino forecast full-year 2025 profits of USD 15 billion with a profit margin of 99 percent - a level that significantly exceeds even established Wall Street banks.
Of the USD 4.9 billion earned in the second quarter, USD 3.1 billion came from operating activities, while the remainder resulted from valuation gains on Bitcoin and gold holdings. The company now holds more than USD 127 billion in US Treasuries - USD 105.5 billion directly and USD 21.3 billion indirectly. This position makes Tether one of the largest holders of US government debt.
USDT issuance increased by USD 13.4 billion in the second quarter to over USD 157 billion. As of December 2025, market capitalization stands at approximately USD 186 billion, giving Tether a market share of nearly 60 percent of the global stablecoin market. USDT is used in 66 percent of all stablecoin transactions on centralized exchanges and dominates cross-border crypto settlements in OTC trading with a market share exceeding 82 percent.
Hadron platform as the foundation for equity tokenization
The planned tokenization of Tether shares would be based on the Hadron platform, launched specifically for this purpose in November 2024. Hadron enables the on-chain representation of equities, bonds, commodities, and other assets. The platform offers a comprehensive ecosystem for issuing and managing tokenized assets, including KYC compliance, blockchain reporting, and regulatory advisory services.
With Hadron, Tether positions itself in the rapidly growing market for tokenized real-world assets, currently estimated at over USD 6.5 billion. The platform targets institutional investors, fund managers, governments, and private companies. It leverages the technology and expertise Tether has built over more than a decade operating USDT.
Strategic partnership with Cantor Fitzgerald
The relationship between Tether and Cantor Fitzgerald extends beyond the current funding round. Cantor custodies the majority of the US Treasuries backing more than USD 130 billion in USDT tokens. More than a year ago, Cantor acquired a convertible bond for over USD 600 million, granting the financial services firm the right to five percent of Tether’s equity. At a USD 500 billion valuation, this stake would be worth USD 25 billion.
Howard Lutnick, former CEO of Cantor Fitzgerald, who was appointed US Secretary of Commerce in February 2025, handed leadership to his sons Brandon and Kyle Lutnick. Brandon Lutnick previously worked closely with Tether and led the relationship with the stablecoin issuer at Cantor. The partnership also includes several Bitcoin initiatives: Cantor is developing a Bitcoin investment vehicle with SoftBank, Tether, and Bitfinex with a volume of USD 4 billion. In parallel, Cantor plans a Bitcoin-backed lending program with an initial volume of USD 2 billion.
Liquidity and regulatory outlook
The tokenization of Tether shares would provide investors with an alternative liquidity option. With only three percent of equity available for sale and an IPO excluded for the foreseeable future, share tradability remains limited. Tokenized shares could be traded on a blockchain basis, offering greater flexibility - subject to regulatory approvals.
CEO Ardoino emphasized that Tether is prioritizing strategic partners over a broad investor syndicate. Discussions reportedly include institutional investors such as SoftBank and Ark Invest. The funding round is expected to close by the end of 2025, although final terms may still vary.
A valuation of USD 500 billion is likely to draw the attention of global regulators. Analysts expect the company to be classified as systemically important, leading to increased oversight. Tether has already announced the launch of USAT, a stablecoin designed specifically for the US market and subject to stricter compliance requirements. The launch was originally planned for December 2025, with the goal of reaching 100 million American users.
