On November 14, Tether, the issuer of the stablecoin USDT, announced the launch of its asset tokenization platform, Hadron by Tether. This platform aims to simplify the process of tokenizing various real-world assets. Hadron integrates Tether's decade-long technological accumulation to provide asset tokenization services for institutions, fund managers, governments, and private companies. Hadron offers users an intuitive platform for issuing and managing the entire lifecycle of digital tokenized assets, providing modularity, security, reliability, and a seamless user experience. Hadron supports the tokenization of various real-world assets, including stablecoins pegged to fiat currencies or backed by commodities, stocks, bonds, funds, structured products, real estate, artworks, and loyalty points. Hadron's goal is to create new opportunities for businesses and governments while making the digital asset space more accessible and transparent. Tether's Hadron will transform the entire digital asset ecosystem and bring prosperity to the asset tokenization of the RWA sector.

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                        Hadron integrates Tether's technological accumulation from the past decade and will also usher in Tether's next decade.
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<p><span>Written by: Golem, Odaily Planet Daily</span></p>
<p>On November 14, stablecoin issuer Tether announced the launch of its asset tokenization platform, Hadron by Tether, which aims to simplify the process of tokenizing various real-world assets (including stocks, bonds, commodities, real estate, funds, and loyalty points, etc.).</p>
<p>Tether claims that Hadron integrates all the technology and expertise Tether has accumulated over the past decade, providing asset tokenization services to institutions, fund managers, governments, and private companies. Odaily Planet Daily will provide a brief introduction to its product features and impact in this article (with a small surprise at the end).</p>
<h2>What are the highlights of Hadron?</h2>
<p>Hadron by Tether offers users an intuitive platform for issuing and managing the entire lifecycle of digital tokenized assets, providing modularity, security, reliability, and a seamless user experience, including the following highlights:</p>
<p><strong>Comprehensive Compliance Framework</strong></p>
<p>The RWA (Real World Asset) track faces more compliance challenges than other blockchain tracks due to its close relationship with traditional finance. Different regulatory requirements in various countries and regions, as well as different management methods for real-world assets, pose challenges to the global circulation of asset tokenization.</p>
<p>Therefore, compliance is also a focus for the Hadron platform. Hadron provides users with a comprehensive set of compliance tools, including KYC (Know Your Customer), AML (Anti-Money Laundering), transaction monitoring, risk management, and secondary market ecosystem monitoring. These services cover both on-chain and centralized exchanges. A robust compliance framework fosters trust between investors and regulators, paving the way for the circulation of asset tokenization.</p>
<p><strong>Support for Multiple Real-World Asset Tokenizations</strong></p>
<p>In 2023, the RWA track also experienced a brief period of popularity, but at that time, most DeFi protocols chose to tokenize U.S. Treasury bonds or synthesize some assets, such as Sky (formerly Maker) and Synthetix. However, attempts to tokenize other types of assets were minimal, as on-chain DeFi yields dropped and on-chain U.S. Treasury bonds became popular, leading to an imbalanced development of the RWA category, causing limited benefits for real enterprises.</p>
<p>Now, Tether's newly launched asset tokenization platform, Hadron, not only supports the tokenization of ordinary assets, such as stablecoins pegged to fiat or supported by commodities, stocks, bonds, and funds, but also supports the tokenization of more complex assets, such as structured products (backed by a basket of collateral), real estate, art, loyalty points, etc. With Tether's strong capabilities, this is expected to balance the development of the RWA track and provide some nation-states and enterprises with alternative financing opportunities beyond traditional capital markets.</p>
<p><strong>Seamless Asset Tokenization Experience with Non-Custodial Assets</strong></p>
<p>The Hadron platform launched its testing on November 14, allowing users to tokenize assets in just four steps, as follows:</p>
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<p>Registration: To create your issuer account on Hadron, users must first register and complete the KYC process;</p>
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<p>Asset Tokenization: Connect a non-custodial wallet, select the blockchain and KYC template for the tokenized asset, set access controls, and blockchain key management before creating the first tokenized asset;</p>
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<p>Distribution: Once created, users can invite potential clients to apply for and obtain the tokenized asset. With Hadron's KYC platform, users can use tools to conduct compliant due diligence on clients;</p>
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<p>Issuance or Redemption: Hadron provides secure, easy-to-use, and comprehensive tools to coordinate issuance, redemption, transfer, and other operations on the selected blockchain, without requiring users to have expertise in blockchain.</p>
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<p>In addition to providing a seamless and convenient asset tokenization experience, Hadron also enables users to have complete self-custody (users always retain full control and corresponding responsibilities for their assets). It utilizes a very intuitive user interface to set up and configure multi-signature wallets, including hardware wallets.</p>
<p>Previously, many RWA projects tended to adopt centralized management and operational methods, whether in the areas of real asset review, asset custody, or user KYC verification. While this approach can facilitate the smooth operation of RWA and make it easier to comply with regulatory requirements, excessive centralization always poses significant risks. Hadron grants users sufficient rights and freedom in KYC, modularity, and asset custody, striking a good balance between the user experience for issuers and decentralization.</p>
<h2>Can Hadron lead RWA to prosperity?</h2>
<p>On April 14 of this year, Tether CEO Paolo Ardoino announced on the X platform that Tether's asset tokenization platform would soon be open (exactly 7 months later), and has already indicated the platform's keywords: fully non-custodial, multi-chain, multi-asset types, customizable.The birth of Hadron may truly integrate all the technology and expertise that Tether has accumulated over the past decade, and it will also open up Tether's next decade.

Paolo Ardoino stated at the launch of Hadron, "We believe Hadron by Tether will significantly improve the financial industry. By leveraging all of Tether's technology (which has issued 125 billion USD in USDT), we will make asset tokenization simpler, safer, and more scalable. Our goal is to create new opportunities for businesses and governments while making the digital asset space more accessible and transparent."

Former VanEck advisor Gabor Gurbacs posted on the X platform, "By 2030, the value of tokenized assets is expected to reach around 10.90 trillion USD, with real estate, debt, and investment funds being the top three tokenized assets; private equity, entertainment, collectibles, and data are other areas worth paying attention to. Meanwhile, the Bitcoin capital markets, stablecoins, and asset tokenization have the potential to lead the post-ETF world, bringing a 10 trillion USD inflow potential for new tools and changing the way the next generation invests."

Quantum Economics analyst Alexandre Lores also commented, "Tether's Hadron will transform the entire digital asset ecosystem—from Bitcoin to real-world asset tokenization. The era of large-scale RWA tokenization has arrived, which means a fairer and more equitable global economic competitive environment."

According to data from DefiLlama, the current TVL of the RWA track is 6.57 billion USD, which is over 8 times lower than the 55.51 billion USD TVL of the LSD track. If the RWA track is indeed worth trillions of dollars, there is still significant room for growth from the perspective of TVL.

<img src='https://sosovalue.s3.us-west-2.amazonaws.com/sosovalue/web3image/24/11/16/taict0zcoodx.png'/>

Tether currently holds a very important strategic position and capital volume in both the blockchain and traditional finance sectors. In Tether's Q3 financial report, it shows that its group net profit for the third quarter of 2024 is 2.50 billion USD, with an annual profit of 7.70 billion USD, and a stablecoin circulation exceeding 120 billion USD; in terms of reserves, Tether ranks among the top 18 holders of U.S. Treasury securities globally, holding over 105 billion USD in cash and cash equivalents, with direct and indirect exposure to U.S. Treasury securities reaching as high as 102.50 billion USD.

If Tether acts as a bridge between traditional finance and the crypto world, it will have more influence in this regard, truly promoting RWA towards prosperity.

<h2>A Surprise</h2>

Although Tether's Hadron aims to promote asset tokenization in the RWA track, it also supports the Bitcoin ecosystem. Among Hadron's modular multi-chain options is Bitcoin L2, and on November 15, Paolo Ardoino specifically posted stating, "Among the many blockchain support options, Hadron has integrated the Bitcoin sidechain Liquid, as we received positive feedback from current test users (governments and institutions) regarding Liquid, especially its support for crypto transactions."

Although the Bitcoin sidechain Liquid may not have a close relationship with the current Bitcoin ecosystem. On April 14, when asked by a user why Tether does not support the Bitcoin ecosystem but is instead building tokenization technology for 'garbage chains,' Paolo Ardoino replied, "Liquid and RGB will soon be supported, and the team building the tokenization platform is actually working to make it available on RGB as well." 

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Tether's newly launched asset tokenization platform Hadron opens a growth window for RWA.