Tether's former CIO seeks buyers for part of his stake in the firm: Bloomberg

Former Tether Chief Investment Officer Richard Heathcote 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, and discussions with potential buyers are 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.

The Block reached out to Tether and PJT Partners for comment.

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 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.

Tether remains the world's largest stablecoin issuer. 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.

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