Tether simplifies tokenization for business with new platform

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As a seasoned analyst with over two decades of experience in the finance industry, I’ve witnessed many transformative moments that have reshaped the financial landscape. However, few have captured my attention like Tether’s latest venture – Hadron. Having closely followed Tether since its early days as a stablecoin issuer, it’s fascinating to see how they’ve evolved and expanded their business from finance to energy.

Tether, the world’s leading stablecoin provider, has introduced a tokenization platform for real-world assets. This innovative system enables businesses to convert various types of assets, such as stocks, bonds, shares, loyalty points, and even stablecoins, into digital tokens.

As per a statement made on November 14th, Hadron has been unveiled with the aim of streamlining the process of tokenization for various market sectors, following several decades of converting US dollars into stable coins.

On this innovative system, you’ll find comprehensive services handling every stage of digital token management, ensuring modularity, safety, and dependability throughout the asset lifecycle.

Additionally, Tether has incorporated several security measures into this system, including customer identification procedures (KYC), anti-fraud practices (AML), transaction monitoring (Know Your Transaction), and risk assessment strategies.

On his recent post dated November 14th, Paolo Ardoino stated that the platform is one where users do not entrust their assets to any intermediary. Instead, it caters to multiple blockchains, empowering users with complete control and accountability over their own tokenized holdings.

Tether’s latest offering, Hadron, serves as a platform that institutions and professionals can utilize, encompassing all tokenization technology Tether has developed over the past decade. With Hadron, users can launch and oversee the entire lifecycle of various types of tokens, including stablecoins.

— Paolo Ardoino 🤖🍐 (@paoloardoino) November 14, 2024

This platform has the potential not just for powering businesses, but also for enabling nation-states to tokenize their assets on the blockchain as well.

Currently, Tether leads as the globe’s most significant stablecoin provider, boasting a market capitalization exceeding $126 billion. In their recent financial statement, Tether combined their nine-month earnings of $7.7 billion into a net profit of $2.5 billion, with a total asset value of $134 billion.

Tether diversified business from finance to energy

By October 2024, the investment division of Tether had funded a real-world crude oil transaction to the tune of $45 million using USDT. This marked a substantial step in their strategic expansion beyond their longstanding role as a stablecoin issuer.

Through this plan, significant oil corporations listed on the stock market can move their crude oil to a prominent commodity dealer. Achieving this significant step involves shipping and loading approximately 670,000 barrels of oil from Middle Eastern nations.

Additionally, they revealed partnerships with the UAE government for the creation of a new digital currency, directly linked to the value of the UAE Dirham (AED). This digital currency will be fully collateralized by the nation’s reserves.

This growth strategy aligns with the company’s aspiration for the UAE to emerge as a major international economic center. Consequently, they aim to tokenize the UAE’s currency (the dirham) and make it available within the local financial system.

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2024-11-15 12:26