Tether's Former CIO Seeks Buyers for Part of 1.26% Stake via PJT Partners

Richard Heathcote, former Chief Investment Officer of Tether, is seeking buyers for part of his 1.26% stake in the stablecoin issuer after stepping down from the role earlier this year, according to Bloomberg. Heathcote is working with investment bank PJT Partners on the planned secondary sale, with discussions with potential buyers ongoing, Bloomberg reported citing people familiar with the matter. The report did not disclose how much of the 1.26% stake is being offered for sale or a potential valuation. Tether remains the world's largest stablecoin issuer, with USDT accounting for approximately $184.3 billion of the $291 billion total dollar-pegged stablecoin market capitalization.

Heathcote Joined Tether in January 2023 and Stepped Down in March

Heathcote joined Tether in January 2023 after previously working as a broker at Cantor Fitzgerald's BGC Group. He stepped down as Chief Investment Officer in March and moved into a non-executive advisory role, with his deputy, Zachary Lyons, assuming responsibility for the company's day-to-day investment management. The Block reached out to Tether and PJT Partners for comment.

Tether Paused Fundraising Plans Earlier This Year Pending Audit Results

The potential sale comes after Tether earlier this year paused plans to raise money at a valuation as high as $500 billion, as the company awaits results of its first full financial audit conducted by a Big Four accounting firm. The decision to put the share sale on hold came as potential investors and bankers pushed Tether for greater transparency around its finances.

USDT Accounts for 63% of Dollar-Pegged Stablecoin Market

According to The Block's Data Dashboard, dollar-pegged stablecoins have a combined market capitalization exceeding $291 billion, with USDT accounting for about $184.3 billion, or roughly 63% of the total supply.

FAQ

What percentage of Tether does Richard Heathcote own? Richard Heathcote owns a 1.26% stake in Tether, the stablecoin issuer.

When did Richard Heathcote step down as Tether's Chief Investment Officer? Heathcote stepped down as Chief Investment Officer in March and moved into a non-executive advisory role.

Why did Tether pause its fundraising plans earlier this year? Tether paused plans to raise money at a valuation as high as $500 billion as the company awaits results of its first full financial audit conducted by a Big Four accounting firm, following pressure from potential investors and bankers for greater transparency around its finances.