WisdomTree has launched WisdomTree Connect, an Ethereum-based platform for tokenized real-world assets (RWA). The platform allows customers to interact with WisdomTree-issued tokens on different blockchains and access yield-generating products with blockchain-integrated recordkeeping. Will Peck, Head of Digital Assets at WisdomTree, stated that the increasing interest in tokenized real-world assets prompted the platform’s creation, opening up new business opportunities for the company. WisdomTree Connect initially supports web portal and API access, with plans to explore decentralized application (dApp) interactions in the future. Institutional users can purchase or redeem via US dollars or USD Coin (USDC) stablecoin. The platform complements WisdomTree’s direct-to-retail app, WisdomTree Prime, offering digital asset solutions across the entire customer spectrum.
WisdomTree currently offers seven different tokenized products, totaling $12.2 million in value, in the tokenized US Treasuries market, which has a total market cap of over $2.2 billion. While six of WisdomTree’s products are issued on the Stellar blockchain, the tokens are minted by WisdomTree Connect using Ethereum. The announcement does not specify whether WisdomTree’s existing products will be migrated to Ethereum in the future, despite plans to add support for additional blockchains. Stellar is the second-largest blockchain infrastructure for tokenized US Treasuries, with $426.5 million worth of T-bills deployed as tokens. Ethereum holds over $1.6 billion in digital representations of US Treasuries, with BlackRock leading the way with over $521 million in tokenized shares for its BUIDL fund. Given WisdomTree’s integration plans with dApps, migrating to Ethereum could be a strategic move due to its decentralized ecosystem being the largest by total value locked.
In conclusion, WisdomTree’s launch of WisdomTree Connect signifies a step towards facilitating the adoption of tokenized real-world assets on blockchain. The platform provides easy access to yield-generating products with blockchain-integrated recordkeeping for firms, opening up new B2B and B2B2C opportunities for WisdomTree. While the platform currently operates on Ethereum and supports web portal and API access, future plans include exploring interactions with decentralized applications (dApps). WisdomTree’s existing products in the tokenized US Treasuries market are issued on the Stellar blockchain but minted using Ethereum, raising questions about a possible migration to Ethereum in the future. Considering the growing interest in tokenized assets and the potential benefits of Ethereum’s decentralized ecosystem, such a migration could be advantageous for WisdomTree. Overall, WisdomTree Connect adds value to the company’s digital asset offerings and enhances its presence in the evolving landscape of tokenized real-world assets.
