Tether considering tokenization after share issuance…"Moves to secure liquidity for investors"

Tether (USDT), the world's largest stablecoin (a virtual asset whose value is pegged to fiat currency), is exploring additional liquidity options through tokenization ahead of planned share sales.

On the 12th (Korean time), Bloomberg, citing a Tether representative, reported that Tether is considering tokenizing its shares and is seeking ways to secure liquidity for investors through that measure.

The discussion reportedly followed Tether's direct intervention to stop existing shareholders from selling shares at prices below the company's valuation. In response, Tether said, "We have confirmed that certain shareholders attempted to sell shares," while adding, "Such sale attempts are not authorized, and the process must be conducted under Tether's management." Tether also said, "It does not intend to disclose the identities of those shareholders."

Tether is currently in the process of raising funds through share sales. Prominent potential buyers include Japan's SoftBank Group and the U.S. asset manager ARK Invest.

Tether is also exploring ways for early investors to recover funds without waiting for an initial public offering (IPO) through share buybacks. Recently, fintech companies such as Ripple have also resolved liquidity issues through share buybacks.