Tether, the crypto company behind the third-largest cryptocurrency USDT, announced the launch of its asset tokenization service on Thursday, following months of anticipation from CEO Paolo Ardoino.

The new platform, named Hadron, aims to streamline the process for converting a variety of real-world assets—such as bonds, commodities, stocks, other stablecoins, and loyalty points—into digital tokens on blockchain technology.

"Hadron by Tether" is designed to unlock alternative financing and capital markets opportunities for both nation states and corporations. The service includes comprehensive tools for risk management, compliance with know-your-customer (KYC) and anti-money-laundering (AML) regulations, and monitoring on the secondary market. Initially, it will support Ethereum, Avalanche, and Bitcoin's Liquid scaling network, with plans to add the Telegram-adjacent TON network and other smart contract chains soon.

Tether's ambitions for asset tokenization mark a significant step away from its traditional business, which primarily focuses on the $126 billion USDT stablecoin. The company's recent ventures into asset tokenization are seen as crucial for diversifying its operations, which also include a $600 million gold-backed token and investments across various sectors including startups and technology.