Former Tether CIO Richard Heathcote Prepares Partial Stake Sale

Background on the Transaction

Richard Heathcote, who served as Tether's chief investment officer until March 2026, has engaged investment bank PJT Partners to handle the sale of a portion of his stake. Tether has approved the move, which involves only part of his 1.26% holding. Heathcote shifted to a non-executive advisory role after his time in daily operations, with Zachary Lyons taking over as CIO.

The process marks one of the limited instances where details about ownership in Tether have surfaced publicly. As a privately held entity, Tether does not disclose such transactions routinely. Discussions with potential buyers are underway, though specifics on the size of the portion being sold or any implied valuation remain undisclosed.

Tether's Financial Position and Market Role

Tether issues USDT, the largest stablecoin with a circulating supply near $184 billion, representing around 59% of the overall stablecoin market. The company has generated substantial profits, reporting more than $10 billion in annual earnings in the prior year, largely from interest on reserves held in US Treasury bills and similar assets.

Chairman Giancarlo Devasini's estimated net worth has risen significantly due to these results. Tether's reserves focus on government-backed instruments, supporting the peg of USDT to the dollar. The firm continues to play a central part in crypto trading, liquidity, and settlements across exchanges.

Context of Paused Capital Plans

Earlier in 2026, Tether set aside plans for a capital raise that targeted a valuation approaching $500 billion. Potential investors and banks sought more financial disclosure, leading the company to engage a Big Four accounting firm for its first full audit. This audit is expected to provide greater transparency on reserves and operations.

The stake sale by Heathcote occurs while these preparations continue. Such transactions in private companies can serve as indirect signals about institutional interest, though a single deal does not determine overall value.

Regulatory Environment and Challenges

Tether faces pressure in Europe under the MiCA framework. Several platforms have delisted USDT, including Revolut's announcement affecting European users. Tether has chosen not to pursue full compliance with certain aspects of the rules, resulting in reduced availability on some regulated services.

Despite these developments, USDT maintains strong usage globally, particularly in regions seeking dollar liquidity outside traditional banking channels.

Broader Crypto Market Trends

Other crypto firms continue to explore public listings with varying timelines. Kraken has taken steps toward an IPO, including a confidential filing, though reports indicate possible delays into 2027. Bithumb in South Korea has pushed its plans beyond 2028 to address accounting and control measures.

These activities occur as the sector balances growth, regulation, and capital market access. Tether's private status sets it apart, with leadership maintaining that an IPO is unnecessary given its current operations and profitability.

Implications for Private Ownership

The partial sale provides limited insight into Tether's ownership dynamics. Private companies in this space often handle equity transfers carefully to avoid market distortions. Tether has previously restricted certain secondary sales by shareholders for this reason, but the current transaction carries explicit company support.

Heathcote's involvement during his tenure included managing reserves and investments. His move aligns with common practices for executives seeking liquidity after operational roles.