Global asset manager WisdomTree has unveiled its latest blockchain platform, WisdomTreeConnect, designed to capitalize on the growing demand for tokenized real-world assets (RWAs). The platform, which operates alongside WisdomTree’s retail application, WisdomTree Prime, aims to facilitate easier trading options for both institutional and retail users by offering digital assets across multiple blockchain networks.
WisdomTreeConnect will serve as a bridge between traditional finance and decentralized finance (DeFi), incorporating the WisdomTree Government Money Market Digital Fund (WTGXX) to streamline access to tokenized assets. With built-in blockchain technology for record-keeping and security, the platform will be available via web portal and API, as the company expands its focus to decentralized applications (dApps).
Institutional investors will have the ability to buy and redeem tokens in USD and USDC, adding features for seamless fiat-to-crypto conversions. Initially, all tokens will be minted on Ethereum, though the asset manager has plans to support additional blockchains in the future.
Will Peck, Head of Digital Assets at WisdomTree, highlighted the platform’s potential to expand business opportunities: “With increasing interest in tokenized real-world assets, WisdomTree Connect opens up additional business-to-business (B2B) and business-to-business-to-consumer (B2B2C) opportunities for WisdomTree to provide access to digital funds to on-chain firms without leaving the ecosystem.”
This development comes as financial giants like BlackRock and Franklin Templeton also ramp up their efforts in tokenizing RWAs. BlackRock CEO Larry Fink has emphasized the benefits of tokenization in reducing settlement costs and offering more tailored investment options. Similarly, Franklin Templeton CEO Jenny Johnson has praised blockchain technology for its cost-effectiveness and the potential it holds for expanding investment opportunities, including integrating tokenized assets with loyalty programs.
As of September 18, BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) held approximately $520 million in assets, while Franklin Templeton’s OnChain U.S. Government Money Fund (FOBXX) managed around $430 million. In comparison, WisdomTree’s Government Money Market Digital (WTGXX) lags behind with under $8 million in assets.