Tether has launched an institutional asset tokenization platform

What’s new? Tether, which issues the largest USDT stablecoin in the crypto market with a capitalization of $127,4 billion, has launched an institutional asset tokenization platform called Hadron. The company claims that it can be used to issue tokens based on any asset, including real-world assets (RWAs) such as securities and stablecoins or loyalty points.

Press release

What else is known? Hadron has an intuitive interface and offers features to manage the full lifecycle of tokenized assets, from issuance to redemption and burning.

It is equipped with anti-money laundering (AML) compliance tools such as Know Your Customer (KYC) and Know Your Transactions (KYT), and other risk management and secondary market monitoring tools including blockchains and centralized exchanges (CEXs).

The creators emphasize that Hadron offers modularity, security, reliability, and convenience for users, who always retain full control over their tokens issued on the platform. Asset security is ensured through customizable multi-signature wallets.

“Hadron by Tether encompasses all the technology and know-how that Tether built over the last decade, in a single platform, aiming to make asset tokenization more accessible than ever, opening new avenues for issuance, investment and core capital markets technology for a broader audience, from institutions to fund managers, from governments to private companies,” the press release says.

Tokenization involves converting ownership of assets into digital tokens on the blockchain. As a result, the liquidity of these assets is enhanced by the ability to trade on digital exchanges 24/7. Other benefits include increased cost efficiency due to the absence of intermediaries, as well as transparency and security enabled by the use of blockchain technology.

Like other similar platforms, Hadron enables the transformation of traditional capital markets into a modern and scalable ecosystem of digital assets.

Hadron supports a wide range of asset types, from simple products such as fiat currency-backed stablecoins or collateralized in commodities to more complex solutions such as tokens backed by digital assets or a basket of digital assets.

The platform supports multiple blockchains with smart contracts and Layer 2 (L2) networks based on the bitcoin blockchain, such as Liquid from Blockstream.

“Our goal is to create new opportunities for businesses and governments, while also making the digital asset space more accessible and transparent. While traditional finance institutions have always pushed for closed ecosystems that are opaque to citizens, Hadron by Tether reinforces our commitment to build a more inclusive future,” said Tether CEO Paolo Ardoino.

The platform aims to serve small businesses as well as hedge funds and entire governments. In the first step, the customer needs to register and undergo KYC verification to create an issuer account.

The second step is to connect a non-custodial crypto wallet, select a preferred blockchain and KYC-verification features for users, and configure individual access elements such as private key management to create a tokenized asset.

Once the asset is released, it can move on to the distribution phase. Customers wishing to buy it can apply, subject to KYC.

The final stage in the life cycle of a tokenized asset is redemption. Hadron also offers all the necessary tools to coordinate redemptions.

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Earlier, a survey by crypto bank Sygnum found that RWA tokenization was a more popular investment type among institutional investors than real estate, which topped the rankings in last year’s survey.