In summary
- Tether launched Hadron to tokenize digital and real-world assets such as stocks, bonds, and stablecoins.
- The platform seeks to facilitate tokenization with tools to manage the lifecycle of assets.
- Hadron complies with regulations such as KYC and AML, and aims to collaborate with developing nation-states.
Stablecoin giant Tether has launched Hadron, a tokenization platform for digital and real-world assets, amid a boom in the tokenization of financial instruments on decentralized networks.
Hadron allows users to tokenize various assets, from stocks and bonds to stablecoins and loyalty points, Tether said in a statement released Thursday.
The platform also offers tools to issue and manage the entire lifecycle of digital tokenized assets, with the aim of facilitating the asset tokenization process for both individual and institutional investors, according to the company.
Tokenization of real-world assets is the process of converting ownership rights of physical assets into digital tokens on a Blockchain.
Tokens represent fractional or full ownership of the asset, allowing for easier buying, selling or trading in digital markets, while providing greater liquidity, transparency and accessibility.
“Traditional financial institutions have always advocated for closed ecosystems that are opaque to citizens,” Tether CEO Paolo Ardoino said in the statement. “By leveraging all of Tether’s technology, which today has already secured $125 billion, we are facilitating, securing and scaling the tokenization of assets.”
Hadron supports tokenization of digital securities such as stocks, bonds, and funds; stablecoins backed by fiat and commodities; and Alloy assets from Tethered Assets.
Tethered Assets are designed to track the price of a reference asset “through stabilization strategies,” including overcollateralization with “liquid assets and liquidity pools in secondary markets,” according to the website.
The company also plans to offer tokenization for tokens backed by digital assets, including products backed by baskets of assets.
The platform’s team is also in talks to collaborate with several developing nation-states, a Tether representative told Decrypt.
The Tether-linked platform operates with issuance and burning of assets and capital markets management, in addition to complying with Know Your Customer (KYC) and anti-money laundering (AML) guidelines and other regulatory requirements, as stated by the company in a statement.
Hadron’s launch comes amid a rise in the tokenization of real-world assets.
The total value locked of RWA amounts to $6,591 million, representing an increase of approximately 12% from the same period last year, according to data from DeFiLlama.
Hadron is just one of several native Cryptocurrency players trying to get a piece of the RWA pie.
In early October, Midas launched two tokenized investment products based on mTBill and mBasis, respectively.
Meanwhile, Elmnts, a tokenized investment platform for funds backed by Mining rights royalties, launched that same month on Solana.
DeFi protocol Ondo also began leveraging the tokenized BlackRock USD Institutional Digital Liquidity Pool (BUIDL) for its derivative products earlier this year.
Edited by Sebastian Sinclair and Andrew Hayward
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