Tether Holdings Ltd., the world’s largest digital asset company, is entering the symbolization of stocks, bonds, funds and commodities.
Tether by Tether’s platform, Hadron, will launch on Thursday and will allow users to convert assets into products from Stablecoins fixed to fiat Fiat to digital tokens backed by merchandise or other forms of collateral. The company, registered by the UK’s Virgin Islands, targets customers, Tether said in a statement.
Turning assets into tokens can make them faster and less expensive. Assets can be traded through the blockchain by transferring them from one cryptocurrency wallet to another.
These potential advantages lead to Wall Street companies such as BlackRock Inc., JPMorgan Chase & Co. and Franklin Templeton have provided tokens with money markets and mutual funds in the past few years.
Stablecoins is a form of crypto token pegged to other assets, using reserves to support their value. They are an integral part of how crypto markets work, and are a non-volatile alternative for traders who want to exchange and store wealth between digital assets. Tether’s Stablecoin USDT is pegged to the US dollar and backed by the treasury and other assets, and currently has more than $126.6 billion in circulating tokens.
The Tokenisation platform is Tether’s latest effort to expand its core business. The company announced last week that it completed funding for its first crude oil deal in the Middle East as part of a plan to become a lender for commodity trading.
In the past, closely controlled companies have been at the center of controversy in the past. Tether had previously faced fines from the Commodity Futures Trading Commission and settled with the overall charges of New York authorities involving its past reserves and issued misleading statements.
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