Tether, the producer of the highly successful USDT stablecoin, has announced the launch of its long-awaited tokenization platform.
The new service, Hadron, will create digital copies of real-world assets like stocks, bonds, and commodities on blockchains. In addition, the platform could enable the conversion of assets like loyalty points or other stablecoins. Hadron will also support “basket-collateralized products,” allowing organizations to combine commodities or other assets into a single token.
“Tether’s USDT, which has nearly a $100 billion greater market cap than the next stablecoin, Circle’s USDC, is so active throughout the industry and now they are pushing to innovate in the tokenization space,” said Joel Hugentobler, Cryptocurrency Analyst at Javelin Strategy & Research.
“Tether is much more prominent outside of the United States, so I would imagine other countries will leverage Tether’s platform first, to tokenize assets specific to their jurisdiction,” he said. “Circle and other stablecoin issuers will need to expand their services to compete in this fast-paced, evolving industry.”
Building on Success
Hadron will include tools to help organizations manage risks and conduct Know Your Customer and anti-money laundering checks. According to CoinDesk, Hadron will initially support Ethereum, Avalanche, and Liquid by Blockstream, but plans to add support for the TON network and other smart contract chains.
Tether’s USDT has reached a market capitalization of $127.3 billion, leading an accelerating stablecoin market that has seen a multitude of new offerings. Building on that success, the crypto firm has launched a token that tracks the price of gold. Tether has also proposed a token to the Turkish government that would track the price of boron, a mineral used in the manufacture of everything from fertilizers to cleaning agents.
Driving the Future
The company’s new platform could surpass all these endeavors, as the tokenization industry has the potential to be a market worth trillions of dollars. Tokenization has become a central focus for institutional investors who recognize the powerful benefits the technology offers.
Tokenized assets have also been at the heart of several initiatives by world governments. The technology was recently spotlighted by the Bank of England as one of the key innovations that will drive the future of the financial industry.
