Stock Markets July 6, 2026 04:42 PM

Former Tether CIO to Seek Buyer for Small Equity Stake

Richard Heathcote engages PJT Partners to market part of his 1.26% holding as Tether navigates audit and fundraising questions

By Ajmal Hussain
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Richard Heathcote, who stepped down as chief investment officer of Tether Holdings SA in March, is working with PJT Partners to sell a portion of his 1.26% ownership in the stablecoin issuer. Discussions with prospective purchasers are ongoing and Tether has granted Heathcote permission to sell shares. The move occurs as the company awaits results from its first full financial audit and has paused a planned fundraising at a previously discussed valuation.

Former Tether CIO to Seek Buyer for Small Equity Stake
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Key Points

  • Richard Heathcote is working with PJT Partners to sell part of his 1.26% stake in Tether Holdings SA.
  • Heathcote stepped down as chief investment officer in March and moved into an advisory role; Tether issues USDT, which has $184 billion in circulation.
  • Tether paused plans for a major fundraising while it awaits the results of its first full financial audit; potential buyers and bankers had sought greater transparency.

Richard Heathcote, the former chief investment officer at Tether Holdings SA, is in the process of marketing part of his equity stake in the company, people familiar with the matter said. Heathcote has engaged PJT Partners to handle the sale of a portion of his 1.26% holding.

Heathcote shifted roles in March when the company announced he would step down as chief investment officer and assume an advisory position. Tether is the issuer of USDT, the largest stablecoin by circulation, with $184 billion outstanding.

Those close to the situation said conversations with potential buyers remain ongoing, and they declined to provide a valuation for the stake being offered.

Earlier in the year, Tether put plans to raise new capital on hold. The company had at one point been considering a fundraising at a valuation reported to be as high as $500 billion, but it paused those plans while awaiting the findings of its first comprehensive financial audit. The decision to pause the share sale process followed pressure from prospective investors and bankers for greater financial transparency.

In a related development late last year, Tether took steps to stop certain existing shareholders from pursuing their own secondary sale processes, citing concerns that such transactions could undermine a primary offering. Sources said Heathcote has received company approval to proceed with selling stock.

The situation remains fluid. Potential buyers and Heathcote's advisers have not publicly disclosed any terms or a timetable for completing a transaction, and the people with knowledge of the discussions declined to comment on potential valuations or further details.


Context and implications

The planned disposition of part of Heathcote's stake comes as Tether undergoes external scrutiny related to its finances and fundraising plans. The company continues to hold a dominant position in stablecoins through USDT, which remains widely used in digital-asset markets.

Risks

  • Uncertain valuation - people involved declined to disclose a valuation for the stake, leaving pricing unclear; impacts capital markets and private share transactions.
  • Pending audit - Tether is awaiting the results of its first comprehensive financial audit, which has contributed to pausing a planned fundraising; impacts investor confidence in crypto and fintech markets.
  • Shareholder transaction constraints - Tether has previously moved to block certain secondary sales by shareholders due to concerns about undermining primary deals, creating uncertainty for potential seller and buyer processes; impacts private equity and investor exit opportunities.

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