TLDR
- Richard Heathcote is seeking buyers for part of his Tether stake.
- Heathcote owns a 1.26% stake in Tether, Bloomberg reported.
- PJT Partners is working with Heathcote on the planned sale.
- Tether paused earlier fundraising plans at a $500B valuation.
- USDT has about $184B in circulating supply.
Former Tether Chief Investment Officer Richard Heathcote is seeking buyers for part of his 1.26% stake in the stablecoin issuer, Bloomberg reported, citing people familiar with the matter.
Heathcote is working with investment bank PJT Partners on the planned secondary sale. The size of the stake being offered and the possible valuation were not disclosed.
The planned transaction could give investors a rare look at ownership in Tether, which remains privately held while operating the world’s largest stablecoin, USDT.
Former Tether CIO Plans Stake Sale
Heathcote joined Tether in January 2023 after previously working at Cantor Fitzgerald’s BGC Group. He stepped down as chief investment officer in March and moved into a non-executive advisory role.
His former deputy, Zachary Lyons, took over day-to-day investment management after Heathcote left the CIO role. Bloomberg reported that discussions with potential buyers are ongoing.
The planned sale covers only part of Heathcote’s 1.26% ownership stake. The report did not say how much he plans to sell or whether any buyer has submitted a formal offer.
Tether and PJT Partners were contacted for comment by media outlets. No public statement from the company on the reported sale had been released at the time of the report.
Tether Remains Private as USDT Leads Stablecoins
Tether issues USDT, the largest dollar-pegged stablecoin by market value. USDT has a circulating supply of about $184 billion, giving it the largest share of the stablecoin market.
The broader dollar-backed stablecoin market is valued above $291 billion. USDT accounts for roughly 59% to 63% of that supply, depending on the data source.
Tether CEO Paolo Ardoino has said the company does not need to go public. His position differs from several crypto firms that have explored IPOs or public listings.
The secondary stake sale would not be the same as an IPO. It would involve an existing shareholder seeking buyers for part of his private ownership position.
Audit and Valuation Questions Remain
The possible sale comes after Tether paused earlier plans to raise money at a valuation as high as $500 billion. Bloomberg reported that the company delayed those plans while awaiting results from its first full financial audit by a Big Four accounting firm.
Potential investors and bankers had pushed Tether for more transparency around its finances before any major fundraising. The audit process remains an important issue for outside investors assessing the company.
Tether has become one of crypto’s most profitable private companies because of the income generated from reserves backing USDT. Higher interest rates have increased returns on U.S. Treasury holdings and other reserve assets.
A partial stake sale by a former executive may help set a market reference point for Tether’s private valuation. Any final price would depend on buyer demand, financial disclosures, and investor views on stablecoin regulation.
Regulatory Pressure Continues in Europe
Tether also faces pressure in Europe after the rollout of the EU’s Markets in Crypto-Assets framework. Several MiCA-authorized platforms have moved to delist or restrict USDT after Tether chose not to comply with the framework.
Revolut announced this month that it would remove USDT from its platform. Other regulated exchanges and brokers in Europe have also reviewed stablecoin listings under MiCA rules.
The stablecoin market is changing as regulated issuers compete for market share. Circle, Société Générale Forge, and other firms are expanding compliant stablecoin products in Europe.
