Traditional financial institutions are poised to be the primary drivers of growth in the asset tokenization market, according to Jesse Knutson, COO of Bitfinex Securities, in an interview with Cointelegraph.
“[Currently] it is the more agile institutions, like family offices, that can move quickly. I believe they will have a significant impact in these early days. However, ultimately, the benefits of tokenization will attract traditional institutional investors,” the expert stated.
Institutional players are already a growth catalyst in the crypto industry. Knutson believes this trend will extend to the RWA market:
“The consensus is that markets will evolve, and their development path resembles the trajectory of the digital asset industry over the years.”
The current capitalization of the RWA market stands at $195.5 billion, with $182.6 billion attributed to stablecoins. According to a report by Tren Finance, the sector is projected to grow to $4 trillion by 2030 under conservative estimates and up to $30 trillion under optimistic scenarios.
Tether’s RWA Initiative
On November 14, USDT stablecoin issuer Tether launched a closed beta test of Hadron, its non-custodial asset tokenization platform.
Hadron by Tether is Tether’s new platform as a service that encapsulates all tokenization tech that Tether built in the last 10 years in a product available for institutionals and professionals.
With Hadron, customers can issue and manage the full life-cycle of:
— stablecoins… https://t.co/Z5kZsJZDoi— Paolo Ardoino ?? (@paoloardoino) November 14, 2024
Hadron will offer a system for launching and managing tokenized assets with support for a range of blockchains, including L2 solutions on top of Bitcoin like Blockstream’s Liquid.
Developers emphasized that users will have access to a comprehensive set of compliance and risk management tools.
According to Tether’s head, Paolo Ardoino, Hadron aims to make the digital asset sector more transparent and accessible for both individual users and large institutions, including corporations and governments.
In recent months, the team has presented the platform to several companies and government agencies for preliminary tests, receiving positive feedback.
Earlier, on November 12, Lisk developers announced the launch of the mainnet for their L2 solution for RWA and DePIN.