Tether's tokenization arm, Hadron, has partnered with Bitfinex Securities and ETF issuer KraneShares to drive the adoption of tokenized financial products, marking a significant step in blending blockchain technology with traditional finance. The collaboration focuses on creating tokenized versions of exchange-traded funds (ETFs) and developing secondary market infrastructure, aiming to enhance accessibility, liquidity, and efficiency in securities trading.
The tokenized securities market is projected to surge from $30 billion in 2025 to nearly $10 trillion by 2030, underscoring the potential impact of this initiative. Hadron's blockchain infrastructure will facilitate the tokenization of assets like stocks and bonds, while Bitfinex Securities provides a regulated trading platform under El Salvador's digital asset laws, which serve as a model for compliance and security.
KraneShares plans to transition its entire ETF lineup to tokenized formats in the coming years, with CEO Jonathan Krane highlighting this as a pivotal move toward full digitization. Tokenized ETFs promise benefits such as near-instant settlement, reduced intermediaries, and broader global access, particularly for investors in emerging markets who lack traditional brokerage accounts.
This partnership also explores regulatory frameworks based on El Salvador's pioneering laws, aiming to build trust among institutional investors and ensure tokenized assets meet stringent oversight standards. By addressing infrastructure, compliance, and market development, the alliance seeks to set industry benchmarks and foster wider blockchain adoption in finance.
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