WisdomTree has made waves in the financial world by launching its new Ethereum-based platform for tokenized real-world assets, known as WisdomTree Connect, on Sept. 18. This innovative platform is designed to empower customers by enabling them to interact seamlessly with any WisdomTree-issued token across various blockchains.
The primary objective of WisdomTree Connect is to provide firms with access to yield-generating products on-chain, supplemented by blockchain-integrated recordkeeping. Customers will receive digital records of WisdomTree’s digital funds directly in their wallets. These tokens can either be self-hosted or managed through third-party custodial services, offering flexibility to users.
Will Peck, Head of Digital Assets at WisdomTree, acknowledges the growing interest in tokenized real-world assets as a driving force behind the creation of WisdomTree Connect. He highlighted that this platform opens new business-to-business (B2B) and business-to-business-to-consumer (B2B2C) opportunities, ensuring that on-chain firms can access digital funds without leaving the blockchain ecosystem.
The platform currently supports access via web portals and APIs, with future plans to integrate decentralized application (dApp) interactions. Institutional users can conveniently purchase or redeem assets using US dollars or the USD Coin (USDC) stablecoin. This initiative is complemented by WisdomTree’s existing direct-to-retail app, WisdomTree Prime, which offers a wide range of digital asset solutions for customers.
WisdomTree Connect’s Ethereum Integration
According to RWA.xyz, the total market cap of tokenized US Treasuries exceeds $2.2 billion. WisdomTree itself has tokenized assets worth $12.2 million, spread over seven different products. This makes WisdomTree a significant player, though it currently ranks outside the top 10 issuers by total tokenized asset value.
These asset offerings range from short-term to long-term Treasuries, with liquidity periods spanning 7 to 10 years. Interestingly, six out of the seven products issued by WisdomTree are on the Stellar blockchain, while WisdomTree Connect operates using Ethereum. Although there are plans to support additional blockchains, it remains unclear whether existing products will migrate to Ethereum.
The Stellar blockchain is the second-largest platform for tokenized US Treasuries, boasting a value of $426.5 million, driven largely by Franklin Templeton’s FOBXX tokenized fund. On the other hand, Ethereum leads with over $1.6 billion in digital representations of U.S. Treasuries, with BlackRock topping the chart with over $521 million in tokenized shares for its BUIDL fund.
Considering WisdomTree’s aspirations to integrate tokens with decentralized applications, migrating to Ethereum would be a strategic move. Ethereum’s decentralized ecosystem, being the largest by total value locked, offers a robust platform for enhanced digital asset management.
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