Original article by: Liz Napolitano
Original title: Tether Launches Hadron Amid $6.5B Tokenization Boom for Real-World Assets
Original source: Decrypt
Compiled by: Koala, Mars Finance
Hadron plans to let users tokenize a variety of assets, including stocks, bonds, stablecoins, and loyalty points.
Amid the craze for tokenizing financial instruments on decentralized networks, stablecoin giant Tether has launched Hadron, a tokenization platform for digital and real-world assets.
Tether said in a statement on Thursday that Hadron allows users to tokenize a variety of assets such as stocks, bonds, stablecoins and loyalty points.
The company said the platform also provides tools for issuing and managing the entire life cycle of digital tokenized assets, aiming to facilitate the asset tokenization process for individual and institutional investors.
Real-world asset tokenization is the process of converting ownership of physical assets into digital tokens on the blockchain.
Tokens represent partial or full ownership of an asset, allowing it to be bought, sold or traded more easily on digital marketplaces while providing greater liquidity, transparency and accessibility.
“Traditional financial institutions have been driving closed ecosystems that are opaque to citizens,” said Tether CEO Paolo Ardoino in the statement. “By leveraging all of Tether’s technology, now backed by $125 billion, we are making asset tokenization easier, more secure, and more scalable.”
Hadron supports the tokenization of digital securities such as stocks, bonds, and funds; stablecoins pegged to fiat currencies and backed by commodities; and Alloy by Tethered Assets.
According to Tether’s website, Tethered Assets are designed to track the price of a reference asset “through a stabilization strategy,” including over-collateralization using “liquid assets and secondary market liquidity pools.”
The company also plans to offer tokenization for digital asset collateralized tokens, including basket collateralized products.
A Tether representative told Decrypt that the platform’s team is currently providing testing services to a number of institutions and is also in talks with several developing countries to collaborate.
The company said in a statement that the platform pegged to Tether also conducts asset issuance and destruction and capital market management, in addition to complying with Know Your Customer (KYC) and Anti-Money Laundering (AML) guidelines and other regulatory requirements.
Hadron’s launch comes at a time when the tokenization of real-world assets is on the rise.
DeFiLlama data shows that the total value locked in RWA is US$6.591 billion, an increase of about 12% from the same period last year.
Hadron is just one of several crypto-native businesses trying to get a piece of the RWA pie.
In early October, Midas launched two tokenized investment products based on mTBill and mBasis.
Meanwhile, Elmnts, a tokenized investment platform for funds backed by mineral rights royalties, launched on Solana later that month.
DeFi protocol Ondo also began leveraging the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) tokenized money market fund for its derivatives products earlier this year.
