Tether may tokenize equity to ensure liquidity for investors: Report
Tether is considering tokenizing equity or conducting share buybacks to provide liquidity for investors after a funding round.Summary
Tether, the issuer of the USDt stablecoin, is reportedly exploring ways to ensure liquidity for new investors as it aims for a $500 billion valuation. This consideration comes as the company is in talks to raise $20 billion for a 3% stake. Following a recent incident where Tether stopped an existing shareholder from selling a $1 billion stake, the company plans to offer liquidity via tokenization or share buybacks once the funding round concludes. Tokenizing equity can enhance liquidity by simplifying transfers, fractionalization, and collateralization in DeFi. This development aligns with broader trends in finance, as the US SEC recently approved the Depository Trust and Clearing Corporation (DTCC) to tokenize stocks, ETFs, and bonds, signaling a move toward onchain markets.
(Source：Cointelegraph)