Major stablecoin issuer Tether partners with asset manager KraneShares and regulated platform Bitfinex Securities to accelerate institutional adoption of tokenized financial products, targeting a market projected to reach trillions by decade's end.
Stablecoin giant Tether has announced a strategic partnership with asset manager KraneShares and tokenized securities platform Bitfinex Securities, marking the latest push by major financial players to bring traditional investment products onto blockchain rails.
The collaboration, unveiled Thursday, positions the three companies to capture a share of what industry projections suggest could become a multi-trillion-dollar tokenized securities market by 2030.
The partnership brings together Tether's asset tokenization division, Hadron by Tether, with KraneShares' exchange-traded fund expertise and Bitfinex Securities' regulated trading infrastructure. Together, the trio aims to create tokenized versions of traditional financial products and build the systems needed for them to trade on regulated digital asset platforms.
Combining Infrastructure, Expertise, and Distribution
Hadron by Tether will serve as the technological backbone for the partnership, providing the platform infrastructure for secure and scalable tokenized asset markets. The division specializes in creating digital representations of real-world assets on blockchain networks, enabling the benefits of programmability, composability, and enhanced transparency that blockchain technology offers.
Bitfinex Securities brings crucial regulatory capabilities to the table through its licensed platform under El Salvador's National Commission of Digital Assets (CNAD). The platform offers secondary trading liquidity, a service vital for creating credible markets where investors can trade tokenized securities confidently. Bitfinex Securities was the first international platform to receive a Digital Asset Service Provider license under El Salvador's groundbreaking Digital Assets Issuance Law, passed in January 2023.
KraneShares, known for managing the largest U.S.-listed China-focused ETF, will contribute its deep exchange-traded fund expertise and global distribution channels. The asset management firm has established itself as a leader in providing innovative investment strategies focused on China, climate, and alternative assets. For this partnership, KraneShares brings critical knowledge about fund structures, investor demand, and the operational requirements for bringing tokenized products to global markets.
A Market Poised for Explosive Growth
The collaboration comes as financial institutions worldwide explore how to bring real-world assets like stocks, bonds, and ETFs onto blockchain networks. According to the partnership announcement, the global tokenized securities market is projected to grow from approximately $30 billion in 2025 to nearly $10 trillion by 2030, reflecting accelerating institutional adoption of blockchain-based capital formation.
These projections, while ambitious, align with broader industry trends. McKinsey & Company's analysis estimates the tokenized market capitalization could reach around $2 trillion by 2030 in a base case scenario, potentially doubling to $4 trillion in a bullish scenario. Other industry forecasters have projected even higher figures, with some estimates reaching as high as $16 trillion to $30 trillion depending on adoption rates and the scope of assets included.
"More than $700 trillion in global financial assets exist today, with over $10 trillion expected to be tokenized by 2030," said Gabor Gurbacs, CEO of Hadron by Tether, in the partnership announcement. "We are building the infrastructure that will connect those markets to a more efficient and accessible future."
Tokenization's Compelling Value Proposition
The appeal of tokenized securities lies in their potential to revolutionize how financial products are issued, traded, and settled. Traditional securities markets operate with multiple intermediaries, settlement delays, and limited trading hours. Tokenized versions promise near-instant settlement, 24/7 trading capability, reduced operational costs, and increased accessibility through fractional ownership.
For investors, tokenization could mean the ability to buy exposure to funds using digital wallets, with transactions settling in minutes rather than days. For issuers, blockchain-based securities offer streamlined compliance processes, automated dividend distributions through smart contracts, and access to a global investor base without traditional geographic barriers.
"Credible secondary markets are essential to realizing the full potential of tokenized assets," said Jesse Knutson, Head of Operations at Bitfinex Securities. "When investors can trade confidently and regulators have clarity, new classes of capital become accessible. This collaboration with KraneShares reflects an exciting direction of travel, whereby institutional capital is increasingly migrating to tokenized assets as it recognizes the value of efficiency, scalability, and innovation."
KraneShares' Bold Tokenization Vision
The partnership announcement revealed an unexpectedly aggressive timeline from KraneShares regarding tokenization adoption. Jonathan Krane, CEO of KraneShares, stated that the firm believes its business "in the next three to four years will be 100% tokenized," calling this strategic agreement "an important step toward that future."
This commitment from an asset manager overseeing major funds like the KraneShares CSI China Internet ETF (KWEB) signals growing confidence among traditional financial institutions that tokenization represents not just an experimental technology but a fundamental infrastructure upgrade for capital markets.
El Salvador's Pioneering Regulatory Framework
The partnership builds on El Salvador's forward-thinking approach to digital assets. After becoming the first country to adopt Bitcoin as legal tender in September 2021, the Central American nation has continued developing comprehensive regulatory frameworks for digital asset innovation.
The Digital Assets Issuance Law, passed in January 2023, created a clear regulatory structure for tokenized securities and established CNAD as the supervisory authority. This framework has attracted major crypto platforms including Tether, Bitfinex, and Binance to establish operations in the country, positioning El Salvador as an emerging hub for digital asset services in Latin America.
Part of a Broader Institutional Wave
The Tether-KraneShares-Bitfinex partnership represents just one example of accelerating institutional interest in tokenized assets. BlackRock's BUIDL fund has grown to over $2.5 billion in assets under management, becoming the world's largest tokenized treasury fund. Franklin Templeton's OnChain U.S. Government Money Fund continues expanding across multiple blockchains and jurisdictions.
Other major financial institutions including UBS, JPMorgan, and Fidelity are actively testing blockchain infrastructure for bonds, private credit, and equity funds. BlackRock CEO Larry Fink has called tokenization "the next generation for markets" and predicted that "every stock and every bond" will eventually be tokenized.
Challenges Ahead
Despite optimistic projections, significant challenges remain for widespread tokenization adoption. Regulatory clarity varies dramatically across jurisdictions, with some countries embracing the technology while others maintain restrictive frameworks. Technical interoperability between different blockchain networks requires further development. Many financial institutions remain in a "wait and see" mode, observing how early adopters navigate compliance requirements and operational challenges.
Modernizing existing financial infrastructure, especially in heavily regulated sectors, poses substantial hurdles. Traditional securities markets have evolved over decades with deeply embedded processes and systems. Converting these to blockchain-based alternatives requires not just technological changes but fundamental shifts in market structure, custody arrangements, and regulatory oversight.
Final thoughts
The partnership between Hadron by Tether, KraneShares, and Bitfinex Securities will focus on evaluating institutional demand, validating tokenized product structures, and advancing real-world asset integration into blockchain systems. The collaboration will leverage El Salvador's digital asset regulatory framework as a foundation for developing products that can potentially scale globally.
"This collaboration reflects Tether and Bitfinex Securities' commitment to supporting the evolution of capital markets," said Paolo Ardoino, CEO of Tether and CTO of Bitfinex Securities. "Working with KraneShares enables us to connect traditional investment products with next-generation financial infrastructure."
As tokenization moves from experimental pilots to scaled commercial deployments, partnerships like this one between technology providers, regulated platforms, and traditional asset managers may prove crucial for bridging the gap between conventional finance and blockchain-based systems.
Whether the market reaches the ambitious multi-trillion-dollar projections by 2030 will depend on continued regulatory development, institutional adoption, and demonstrated operational success of early tokenized products.