Headline: A rare peek at Tether’s private valuation — ex-CIO seeks buyer for part of 1.26% stake
Tether’s private ownership has been put under an uncommon spotlight after former chief investment officer Richard Heathcote moved to sell a portion of his 1.26% holding in the stablecoin issuer, Bloomberg reports. Heathcote is working with PJT Partners and has begun confidential talks with potential buyers — a private transaction that could offer one of the few market signals about the value of Tether’s shares, since the company is not publicly listed.
Key details
- The sale would cover only part of Heathcote’s stake; Bloomberg did not report a valuation.
- The process is private (not an IPO), consistent with Tether CEO Paolo Ardoino’s public stance that “Tether doesn’t need to go public.”
- Heathcote stepped back from day-to-day duties in March and now serves as a non-executive advisor; Zachary Lyons was named CIO in his stead.
Why this matters
Tether issues USDT, the largest stablecoin by market capitalization, and is deeply embedded in crypto trading, payments and exchange liquidity. Because Tether’s shares don’t trade on any public exchange, any secondary sale can act as a rare price discovery event for investors who want exposure to the issuer behind the market’s dominant dollar-pegged token without waiting for a public listing.
Financial and market context
- Tether reported strong results for Q1 2026: $1.04 billion in net profit and excess reserves of $8.23 billion, with most assets held in U.S. government-backed instruments.
- Stablecoin market cap (DeFiLlama): about $312 billion. USDT holds roughly 59.05% market share — around $184.23 billion.
These figures underline why buyers may prize even a minority stake: Tether’s operational scale and sizable reserves make its private equity an attractive — and closely watched — asset.
Regulatory and market backdrop
- Stablecoins are drawing more regulatory scrutiny as they move closer to mainstream payments and banking rails.
- In Europe, Tether has already felt the regulatory ripple effects: Revolut will remove USDT from eligible European accounts after the EU’s MiCA rules took effect. Customers could purchase USDT until July 6 and have until Aug. 31 to sell or withdraw balances.
Broader industry context
Other major crypto firms have pursued different liquidity routes:
- Kraken confidentially filed a draft IPO registration in November, though restructuring and layoffs could push a listing to 2027.
- South Korea’s Bithumb is preparing for a 2028 IPO while also discussing a potential stake sale to Kiwoom Securities.
What to watch
A completed sale of Heathcote’s partial stake would be a notable data point for valuing one of crypto’s largest private businesses. Market participants will be watching how buyers price this exposure to Tether’s reserves, profits and dominant USDT position — and whether the deal spurs further private trading in shares of major crypto firms that prefer to stay off public markets.
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