Former Tether CIO Plans Stake Sale Amid Regulatory Pressures
Vexoda Newsroom
Richard Heathcote, former chief investment officer of Tether, seeks to sell part of his stake in the stablecoin issuer as regulatory pressure and potential IPOs loom on the horizon.
In a recent development reported by Bloomberg, Richard Heathcote, formerly the Chief Investment Officer (CIO) of Tether, is considering selling a portion of his ownership stake. This move comes at a time when other crypto companies are either pursuing or delaying initial public offerings (IPOs), while Tether itself maintains it has no plans to go public.
Heathcote stepped down from his position in March 2026, taking on an advisory role after overseeing the stablecoin issuer's investment portfolio. The planned sale involves only a small part of his 1.26% ownership stake and provides insight into Tether’s private equity structure, despite its significant profitability.
Tether issues USDT (US Dollar Tether), which is currently the world's largest stablecoin by market capitalization with a circulating supply of approximately $184 billion, accounting for about 59% of the total stablecoin market. The sale could offer investors and analysts a rare glimpse into ownership dynamics within this influential player in the crypto space.
The planned transaction is particularly noteworthy given Tether's ongoing regulatory challenges, especially in Europe. USDT has been delisted from several MiCA-authorized platforms due to non-compliance with European Union regulations, including Revolut’s recent announcement of its removal of the stablecoin from its platform.
While Paolo Ardoino, CEO of Tether, has publicly stated that the company does not need an IPO, other crypto firms are exploring public listings. Kraken is reportedly preparing for a potential IPO after raising significant funding and filing confidentially with the SEC in November 2025. However, plans may be delayed due to layoffs related to AI expansion.
The broader implications of Heathcote’s stake sale reflect the evolving landscape of crypto companies navigating regulatory pressures while considering various growth strategies. Traders should closely monitor Tether's actions and those of other major players in response to these challenges.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.