Tether Joins $134M Stablecoin Development Corp Round
Tether Investments has joined a $134 million financing round tied to Stablecoin Development Corporation, the company formerly known as NovaBay Pharmaceuticals, giving the issuer’s stablecoin-focused pivot a high-profile backer and a clear SEC-filed paper trail.
In a January 16, 2026 Form 8-K, NovaBay said it entered into a securities purchase agreement with Tether Investments, R01 Fund LP, Framework Ventures IV L.P. and Sky Frontier Foundation, which is the clearest verified basis for saying Tether participated in the deal.
NovaBay told the SEC that the private placement generated about $134 million in aggregate gross proceeds, which is the filing-backed number behind the round.
The filing also shows the financing was structured through pre-funded warrants covering 837,696,130 shares, with a purchase price of $0.17 per warrant and an exercise price of $0.01 per underlying share, subject to a tiered schedule tied to stockholder approval.
A business overview exhibit filed the same day said the placement closed with $25,000,000 in cash and $109,031,380.86 in SKY tokens and stablecoins, giving readers more detail than most headline summaries of the round.
The same exhibit said the company held 943,599,688.812 SKY at the private placement close. That disclosed balance matters because it shows the financing was not only about raising capital, but also about building a treasury position directly tied to the Sky ecosystem.
The rebrand explains why the financing now carries a stablecoin label
On March 23, 2026, the issuer said NovaBay had changed its name to Stablecoin Development Corporation and updated the market on staking rewards and SKY holdings, formalizing the shift away from its pharmaceutical identity.
On its strategy page, the company presents that shift as a Sky-focused treasury and stablecoin strategy tied to SKY exposure and the USDS ecosystem. That framing helps explain why Tether’s participation drew attention even though no direct Tether corporate announcement was identified in the research package.
The rename also matters for disclosure clarity. Readers tracking the January financing and the later strategy update need to treat NovaBay Pharmaceuticals and Stablecoin Development Corporation as the same issuer moving through a documented corporate pivot.
For TrustsCrypto readers, that distinction matters. The public proof of Tether’s role comes from the issuer’s SEC filing, not from a Tether blog post, so the most defensible wording is that Tether Investments was listed as a participant in the securities purchase agreement.
Why Tether’s name changes the weight of the deal
Tether’s presence in the buyer list gives the financing more signaling value than a routine treasury disclosure because the SEC filing pairs its investment arm with Framework Ventures and Sky Frontier Foundation in the same agreement. That combination points to a financing designed around stablecoin infrastructure exposure rather than a generic balance-sheet raise.
The closing mix disclosed in the exhibit reinforces that reading. Because the filing breaks the consideration into $25,000,000 in cash and $109,031,380.86 in SKY tokens and stablecoins, the round looks more tightly aligned with crypto-native treasury construction than with a conventional cash-only placement.
The announcement also lands in a market that is still rotating around crypto infrastructure narratives. Recent TrustsCrypto coverage shows Korea drives 30% of global crypto volume as altcoins hit 85%, while Bitcoin holds above $74,000 as SOL, ADA and DOGE pull back on Asia rebound, a backdrop that helps explain why a stablecoin-focused capital raise can stand out even without a token launch or exchange listing attached to it.
Mainstream distribution channels are expanding at the same time. That broader accessibility theme is visible in coverage showing how X rolled out cashtags for crypto and stocks on iPhone in the U.S. and Canada, which matters because stablecoin-related products increasingly compete for attention alongside more familiar crypto assets.
What readers should watch next
The next meaningful update is not another headline about who joined the financing. It is whether future disclosures spell out how the issuer plans to deploy the proceeds, how much of the treasury stays in SKY or stablecoins, and when the stockholder-approval milestones tied to the warrant structure are expected to come into view.
Readers should also watch whether Stablecoin Development Corporation keeps using public filings and strategy updates to document the pivot with the same level of detail seen in the January filing and March rebrand announcement. For a company crossing from biotech into crypto treasury management, transparency around holdings, staking income and counterparties is the part that affects trust most directly.
FAQ About Tether’s Stablecoin Development Corporation Financing Round
What did Tether Investments announce?
The verified public record is that Tether Investments was named in NovaBay’s SEC-filed securities purchase agreement as one of the participants in the financing. The research package did not identify a separate Tether blog post or press release announcing the deal.
How large was the financing round?
NovaBay described the transaction in its SEC filing as a nine-figure private placement with aggregate gross proceeds of roughly that size. The filing is also where the warrant count and pricing mechanics were disclosed in detail.
Which company received the financing, and why is that relevant to stablecoins?
The financing was disclosed by NovaBay Pharmaceuticals, which later said on March 23, 2026 that it had changed its name to Stablecoin Development Corporation. That matters because the company’s own strategy materials tie the pivot to SKY holdings, USDS-related activity and a broader stablecoin-focused treasury model.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making any investment decisions.
