A global exchange-traded fund, WisdomTree announced the release of WisdomTreeConnect, a new Ethereum-based platform that prioritizes access to tokenized real-world assets (RWAs). The platform will augment the accessibility and use of WisdomTree’s issued tokens, allowing holders to trade them across multiple blockchains.Â
WisdomTreeConnect expands to dApps, boosting business opportunities
Global ETF and asset manager WisdomTree has launched its latest platform, WisdomTreeConnect, with the tokenization of RWAs in mind. The platform will work with WisdomTree’s retail-based application, WisdomTree Prime, to offer its digital assets across multiple chains, providing an easier trade option for institutional and retail consumers.
According to the global ETF, WisdomTreeConnect will bridge the gap between traditional and decentralized finance (DeFi) and incorporate WisdomTree Government Money Market Digital Fund (WTGXX). The platform will also integrate blockchain for efficient record-keeping and security. It will now be accessible on the web portal and through API, even as the firm explores more opportunities in dApps.Â
Institutional users will also have the option to buy or redeem their tokens in USD and USDC, infusing features for fiat-to-crypto conversions and vice versa. Additionally, tokens will be first minted on Ethereum even as the asset manager plans to add more blockchains in time.
Will Peck, Head of Digital Assets at WisdomTree, commented:
“We’re thrilled to announce the launch of WisdomTree Connect. 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.”
~Will Peck
Financial giants race to tokenize RWAs
BlackRock and Franklin Templeton are at the forefront of the tokenization movement in asset management. Larry Fink, BlackRock’s CEO, noted that tokenization could lower settlement costs and offer tailored investment options.Â
Franklin Templeton’s CEO, Jenny Johnson, has reportedly talked about blockchain, highlighting its cost-effectiveness and how much it would open room for more investment opportunities. She touched on the broader application of tokenized assets, projecting that loyalty programs will be integrated more with RWAs.
Now, both companies have assets under management worth over $400 million. For instance, as of September 18, BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) held assets roughly worth $520 million, and Franklin Templeton’s OnChain U.S. Government Money Fund (FOBXX) stood at approximately $430 million in assets. WisdomTree’s tokenized money fund, Government Money Market Digital (WTGXX), trails them with less than $8 million.Â
