Former Tether CIO Seeks Stake Sale as USDT Dominance Holds

Richard Heathcote is reportedly looking to sell part of his Tether stake, offering a rare look into ownership moves at crypto’s largest stablecoin issuer.

Richard Heathcote, Tether’s former chief investment officer, is seeking to sell part of his 1.26% stake in the company, according to a Bloomberg report. The planned sale comes after Heathcote stepped down from his executive role in March 2026 and moved into a non-executive advisory position.

The report said Heathcote is working with PJT Partners to explore a transaction, though discussions are still preliminary and no valuation or buyer has been disclosed. The sale would involve only a portion of his holding, not the entire 1.26% stake.

The development is notable because Tether remains one of the most profitable and closely watched private companies in crypto. Its USDT token is still the largest stablecoin, with CoinGecko data showing roughly $184 billion in market capitalization and about 59% stablecoin market dominance.

A Rare Private-Market Signal From Tether

Tether’s ownership structure is not as visible as that of publicly listed crypto firms, making any secondary share sale by a former senior executive relevant for investors and market watchers.

Heathcote previously oversaw the reserves and investment portfolio backing USDT, including the company’s large Treasury exposure and wider investment activities. Bloomberg reported in March that he stepped down from day-to-day responsibilities, with deputy Zachary Lyons replacing him as CIO.

Tether reported more than $1.04 billion in net profit for Q1 2026, while its excess reserve buffer reached $8.23 billion. The company also disclosed roughly $141 billion in direct and indirect U.S. Treasury exposure as of March 31.

Audit Push and Valuation Questions Remain in Focus

The potential stake sale also lands as Tether continues to face scrutiny over transparency, audits, regulation, and its private-market valuation.

In March, the firm said it had formally engaged a Big Four accounting firm to complete its first full independent financial statement audit, though it did not name the firm. The audit process is being closely watched because Tether has historically relied on attestations rather than a full audit of its financial statements.

Earlier this year, Reuters reported that CEO Paolo Ardoino pushed back on claims that Tether had scaled back fundraising ambitions, saying discussed figures were hypothetical and not a fixed target. Those reports followed earlier talk of a potential private placement at a valuation as high as $500 billion.