Tether, KraneShares, Bitfinex Form Alliance for Tokenized Securities Market

Core Insights - A partnership was announced on November 6 among Tether's Hadron, KraneShares, and Bitfinex Securities to develop infrastructure for tokenized securities, with market analysts projecting growth from approximately $30 billion in 2025 to around $10 trillion within five years [1][5]. Group 1: Partnership Details - KraneShares aims to collaborate with its partners to create blockchain-based versions of exchange-traded products, bridging traditional finance with distributed ledger systems [2]. - Each partner contributes unique capabilities: Hadron provides the technical platform for digital securities, Bitfinex Securities offers a trading venue authorized by El Salvador's regulator, and KraneShares brings fund management expertise and investor access [3]. Group 2: Strategic Goals - The collaboration targets institutional investors, leveraging El Salvador's regulatory framework for digital assets to create systems for product issuance, compliance, and cross-border trading [5]. - Tether's CEO highlighted the partnership's commitment to capital market evolution, while KraneShares' CEO expressed confidence that their business will be fully tokenized within the next three to four years [4]. Group 3: Broader Context - Financial institutions worldwide are exploring blockchain applications for traditional securities, exemplified by UBS's tokenized fund transaction on Ethereum, indicating a trend among major banks to utilize distributed ledger technology for investment products [6].