Former Tether chief investment officer Richard Heathcote is seeking buyers for part of his 1.26% ownership stake in the stablecoin issuer, offering a rare glimpse into how one of the most profitable and closely watched private companies in crypto may be valued outside public markets, according to people familiar with the matter.
Heathcote is working with PJT Partners on the proposed transaction, the people said. Talks with potential buyers are under way, though the size of the stake being offered and the valuation being discussed have not been disclosed.
The attempted sale comes at a sensitive moment for Tether. The company remains the dominant issuer in the global stablecoin market, with USDT accounting for the majority of dollar-pegged token supply. But it is also facing a shifting regulatory landscape, growing competition from compliant rivals, and renewed attention on its reserves, governance and private-market valuation.
Requests for comment sent to Tether and PJT Partners have not received a response.
The sale process is notable because ownership in Tether rarely becomes available in the open market. Unlike publicly listed financial firms, Tether does not trade on an exchange, does not publish the same level of financial disclosure required of public companies, and has historically offered only limited windows into its balance sheet through attestations. Any transaction involving a meaningful insider stake could therefore become an important reference point for traders, analysts and competing stablecoin issuers trying to assess the company’s true market value.
Heathcote joined Tether in January 2023 after a career at Cantor Fitzgerald’s BGC Group. He stepped down from his executive role in March 2026 and now serves as an adviser to the company. His former deputy, Zachary Lyons, now oversees the firm’s asset operations.
The prospective sale follows Tether’s decision earlier this year to pause fundraising efforts that could have valued the company at as much as $500 billion. That reported valuation target, if achieved, would place Tether among the world’s most valuable private financial technology companies, reflecting the enormous profitability of stablecoin issuance during a period of elevated interest rates and expanding crypto market activity.
How much of Heathcote’s 1.26% stake is being offered remains unclear. Even a partial sale, however, could carry significant implications. At a $500 billion valuation, a 1.26% holding would be worth about $6.3 billion before any discount, transaction structure or liquidity adjustment. If buyers seek a lower valuation because of regulatory, transparency or market risks, the implied price could provide a more conservative benchmark for Tether’s private worth.
A rare test of Tether’s private valuation
Tether occupies a unique position in the digital asset industry. Its flagship token, USDT, is designed to maintain a one-to-one peg with the U.S. dollar and is widely used by crypto traders to move between exchanges, settle trades and access dollar liquidity in markets where traditional banking rails are slower or less available.
That role has made USDT one of the most important pieces of crypto market infrastructure. It is especially dominant across offshore exchanges and emerging-market trading venues, where stablecoins often function as digital dollars. For many traders outside the United States and Europe, USDT is not simply a crypto product but a practical payment and liquidity tool.
Data cited by market trackers show dollar-pegged stablecoins now have a combined market capitalization above $291 billion. USDT represents about $184.3 billion of that total, equal to roughly 63% of the market. Other recent data placed the broader stablecoin market at about $311.31 billion as of July 5, 2026, with USDT supply near $184 billion and a market share of 59.1%.
The difference between those figures reflects the fast-moving nature of stablecoin supply, which can shift as tokens are minted and redeemed. But both data sets point to the same broad conclusion: Tether remains the largest issuer by supply and one of the most systemically important companies in the crypto economy.
That dominance is a major reason why any insider sale attracts attention. Tether’s valuation is difficult to assess from the outside because the company is privately held, has no public equity price and operates in a sector where regulatory risk can change quickly. A sale by a former senior executive could help establish what sophisticated buyers are willing to pay for exposure to the issuer’s future earnings.
Why the audit process matters
The timing of the proposed stake sale is also important because Tether has been moving toward greater financial transparency through its first full audit by a Big Four accounting firm. The process is seen as a major step for a company that has long faced questions about the composition, liquidity and oversight of the reserves backing USDT.
For years, Tether relied on quarterly attestations from BDO Italia. Those reports provided point-in-time snapshots of assets and liabilities, helping show whether the company held sufficient reserves at a specific date. Attestations, however, are narrower than full financial statement audits. They do not provide the same level of review over internal controls, accounting systems and financial performance across an entire reporting period.
A full audit by a Big Four firm is more demanding. It typically examines not only balances at a point in time but also the processes used to produce financial statements, the controls around asset custody and reporting, and the consistency of accounting treatment over time. For Tether, completing such a process could improve confidence among banks, regulators, trading firms and large counterparties.
The company’s decision to pause fundraising while that audit process advanced suggests that transparency and valuation may now be closely linked. Buyers asked to value a private stake in Tether would likely want more clarity over reserves, earnings durability, legal risk, governance and exposure to regulatory changes in major markets.
Tether’s business model has been highly profitable in recent years because the company can earn interest on assets backing USDT while token holders generally do not receive yield. When interest rates are high and stablecoin supply is large, that spread can generate substantial income. But the durability of those profits depends on several conditions, including continued demand for USDT, reserve management, regulatory access and the company’s ability to maintain trust in the peg.
Competition is changing the market
While Tether remains the market leader by supply, usage trends show a more complicated picture. In the first half of 2026, adjusted transaction volume was reportedly led by Tether’s main competitor, which accounted for roughly 70% of flows. That suggests a growing preference for competing stablecoins in institutional and regulated channels.
This distinction matters. Market capitalization shows how many tokens are outstanding, but transaction volume can show where activity is moving. USDT remains deeply embedded in global crypto trading, especially on offshore venues, while regulated alternatives such as USDC have gained ground among companies and platforms that prioritize compliance with U.S. and European rules.
For traders, the stablecoin market is no longer a simple contest over supply. It is increasingly split by jurisdiction, product use and regulatory status. A token can dominate global offshore liquidity while losing ground in regulated payment, settlement or exchange environments. That division may shape future valuations for stablecoin issuers, because different segments of the market carry different levels of legal certainty and growth potential.
Tether’s scale still gives it powerful network effects. Liquidity attracts more liquidity, and USDT remains the most familiar dollar token across many trading pairs. But rivals are using regulation as a competitive advantage, especially in markets where licensed exchanges and payment providers must meet stricter standards.
Europe creates a new regulatory divide
The European Union’s Markets in Crypto-Assets framework, known as MiCA, has created one of the most significant regulatory dividing lines in the stablecoin sector. Rules for stablecoins took full effect on July 1, 2026, requiring issuers to secure authorization as e-money-token providers if they want their products to trade on licensed European platforms.
Tether did not seek the required authorization under the new rules. As a result, USDT has been delisted from licensed European exchanges. The decision effectively leaves the regulated European market to compliant alternatives, including USDC, which secured the necessary license.
This does not mean USDT has disappeared from Europe entirely. Crypto users may still access it through non-European venues or decentralized channels. But the loss of access on licensed exchanges is important because it reduces Tether’s presence in one of the world’s largest regulated financial markets.
For a company seeking a valuation potentially reaching hundreds of billions of dollars, the European shift carries weight. Buyers examining Heathcote’s stake would likely consider whether Tether’s dominance in offshore markets is enough to offset lost access in regulated jurisdictions. They would also consider whether other regions could adopt similar frameworks, forcing stablecoin issuers to choose between compliance, market access and operational flexibility.
MiCA may also strengthen the long-term positioning of compliant stablecoins. If banks, payment companies and licensed crypto platforms increasingly prefer tokens with clear regulatory status, Tether could face pressure in higher-value institutional channels even while maintaining dominance in retail and exchange-based trading.
Tether looks to Bitcoin for growth
At the same time, Tether is pursuing new technical paths that could reinforce USDT’s role across major blockchain ecosystems. On July 7, 2026, plans were revealed to issue USDT natively on the Bitcoin network through the RGB protocol. The move would bring the stablecoin back to Bitcoin, where Tether’s earliest version launched in 2014 through the Omni Layer.
Issuing USDT through RGB could allow transactions connected to Bitcoin’s Lightning Network, potentially enabling faster and cheaper stablecoin transfers while using Bitcoin’s security and liquidity base. If successful, the initiative could expand USDT’s utility in payments and strengthen its connection to the oldest and most widely recognized crypto network.
The move is strategically significant. Bitcoin remains the largest cryptocurrency by market value, but its network has historically been less flexible for token issuance than blockchains such as Ethereum, Tron and Solana. A workable Bitcoin-native USDT product could open new use cases for traders and payment providers that want access to dollar liquidity without leaving the Bitcoin ecosystem.
However, adoption is not guaranteed. Stablecoin success depends not only on technical capability but also on wallet support, exchange integration, liquidity, user experience and regulatory acceptance. Tether has succeeded in the past by making USDT available where trading demand is strongest. The RGB initiative will need similar ecosystem support to become more than a technical milestone.
A stake sale with wider implications
Heathcote’s planned sale does not necessarily signal a negative view of Tether’s future. Former executives often sell private holdings for personal liquidity, portfolio reasons or estate planning. Without details on the size of the stake being offered or the price being discussed, it is difficult to draw firm conclusions about motivation.
Still, the transaction is meaningful because of what it could reveal. If the stake sells near the previously discussed $500 billion valuation, it would suggest strong private demand for exposure to Tether despite regulatory and transparency concerns. If it sells at a steep discount, the deal could show that buyers are applying a higher risk premium to the company’s earnings and market position.
The outcome may also influence future fundraising discussions. A completed secondary sale could serve as a pricing reference for later primary capital raises, employee liquidity programs or strategic transactions. It could also shape how the broader market values other stablecoin issuers, especially as regulation forces the sector into clearer categories of compliant, semi-regulated and offshore activity.
For now, Tether remains both dominant and contested. Its USDT token continues to serve as the main source of dollar liquidity for large parts of the crypto market. Its profits are likely substantial, supported by reserve income and vast circulation. Yet the company faces increasing pressure to provide deeper financial disclosure, adapt to regional regulation and defend its market share against rivals gaining traction in licensed channels.
Heathcote’s effort to sell part of his ownership stake brings those issues into sharper focus. It is not just a private transaction involving a former executive. It is a market test for one of crypto’s most influential companies at a time when stablecoins are moving from the margins of digital asset trading toward the center of global financial regulation.
For deeper context on Tether’s growth and valuation, explore how it targets a massive valuation in today-tether-eyes500b-valuation.
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