On November 6, 2025, Tether Ltd.’s tokenization division, Hadron by Tether, announced a strategic alliance with KraneShares and Bitfinex Securities to bring traditional financial instruments—such as ETFs, stocks, and bonds—onto blockchain networks. The partnership aims to modernize capital markets by combining blockchain efficiency with institutional-grade financial products.
A Three-Way Collaboration to Bridge Traditional and Digital Finance
Under this agreement, each partner brings a specialized role:
- Hadron by Tether will deliver the blockchain infrastructure for asset tokenization.
- Bitfinex Securities will operate as the regulated platform for issuing and trading these digital assets.
- KraneShares will contribute its deep expertise in asset management and exchange-traded funds.
Together, the trio plans to explore tokenized ETFs, improve secondary-market liquidity, and establish the regulatory and operational frameworks needed for institutional adoption of tokenized assets.
Tokenization Market Expected to Skyrocket
The partnership arrives at a time when tokenized securities are gaining serious traction. Analysts estimate that the market, currently valued in the tens of billions, could surge to the trillions by the end of the decade. One projection suggests growth from roughly $30 billion in 2025 to nearly $10 trillion by 2030.
KraneShares CEO Jonathan Krane stated that he expects “our business in the next three to four years will be 100% tokenized,” underscoring the firm’s commitment to digital transformation.
Regulation and Infrastructure Pave the Way
Bitfinex Securities already operates in progressive jurisdictions, including Kazakhstan’s Astana International Finance Centre (AIFC) and El Salvador, which has enacted dedicated digital-asset laws. Meanwhile, Hadron is emphasizing compliance and transparency by integrating features such as KYC/KYB verification, investor whitelisting, and on-chain lifecycle management tools for real-world asset (RWA) tokenization.
This alliance highlights the growing convergence between traditional capital markets and blockchain-based trading ecosystems. For institutional investors and asset managers, tokenization promises faster settlement, reduced costs, and broader market access. However, hurdles such as regulatory uncertainty, investor education, and liquidity development still need to be overcome.
Ultimately, the success of this initiative may depend less on the technology itself and more on whether tokenized products can achieve the trust and scale required by global financial institutions.
