Tether Launches Hadron Platform for Asset Tokenization, Expanding Beyond Stablecoins

Tether, the company behind the third-largest cryptocurrency, USDT, just announced its new asset tokenization service. This news comes after months of anticipation from CEO Paolo Ardoino.

The platform is called Hadron. It aims to make it easier to convert various real-world assets—like bonds, commodities, stocks, other stablecoins, and even loyalty points—into digital tokens using blockchain technology.

Tether wants Hadron to unlock new financing and capital market opportunities for nations and corporations. According to their blog post, the service covers the entire tokenization process. This includes tools for managing risk, complying with know-your-customer (KYC) rules, anti-money laundering (AML) regulations, and monitoring secondary markets.

At launch, Hadron will support Ethereum, Avalanche, and the Bitcoin scaling network Liquid by Blockstream. A Tether spokesperson mentioned that they will soon add the TON network, which is linked to Telegram, along with other smart contract chains.

Paolo Ardoino stated, “We believe 'Hadron by Tether' will significantly improve the financial industry. Our goal is to create new opportunities for businesses and governments while making the digital asset space more accessible and transparent.”

Tether's move into asset tokenization reflects its strategy to diversify beyond its profitable stablecoin operations. Currently, Tether issues the USDT stablecoin, valued at $126 billion, and the gold-backed token XAUT, worth $600 million. So far this year, Tether has reported $7.7 billion in net profits, largely from the yield on its $80 billion reserve of U.S. Treasuries. They have reinvested these profits in startups, bitcoin mining, energy production, and artificial intelligence.

The tokenization market is set to become a multi-trillion-dollar industry. Global banks and digital asset firms are racing to bring traditional financial instruments onto blockchain networks. They aim for greater efficiency, transparency, and lower costs.

Ardoino first shared plans for Tether's tokenization platform back in April. Additionally, the firm invested $100 million in a Latin American agricultural company, which is a co-founder and partial owner of Agrotoken, a startup focused on agricultural commodities tokenization.

UPDATE (Nov. 14, 18:27 UTC): The list of blockchains supported by the platform has been updated, according to a Tether spokesperson.