On September 18, WisdomTree launched a new platform called WisdomTree Connect. This platform is built on Ethereum and aims to help institutional investors tokenize real-world assets (RWAs).
This move is part of WisdomTree's larger strategy in the digital asset space. They have also ventured into products like their spot Bitcoin exchange-traded fund (ETF).
WisdomTree Connect offers firms the ability to manage tokenized assets through self-hosted wallets or third-party custodians. Users can buy and redeem assets using U.S. dollars or the stablecoin USDC. This flexibility makes it easier for institutions to enter the digital asset market.
The platform works alongside WisdomTree's retail app, WisdomTree Prime. This app gives retail investors direct access to digital assets. Together, these platforms create a cohesive strategy that bridges traditional finance and blockchain technology for both institutional and retail users.
As WisdomTree Connect evolves, the company plans to add decentralized applications (dApps) and expand its features. Right now, users can access the platform through a web portal and API. Future updates will allow for more direct interactions with tokenized assets on the blockchain.
Additionally, the platform aims to support more blockchains in the future. This expansion will make it even easier for investors to get involved.
Will Peck, the Head of Digital Assets at WisdomTree, mentioned, “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.” This means more access to digital funds for on-chain firms.
The tokenization of real-world assets is attracting attention from major financial institutions like BlackRock and Franklin Templeton. BlackRock's CEO, Larry Fink, pointed out that tokenization can lower settlement costs and improve investor customization. Meanwhile, Franklin Templeton's CEO, Jenny Johnson, highlighted the broader applications of tokenized assets, such as loyalty programs and NFT royalties.
Johnson added, “It’s this combination of loyalty programs with real-world assets. You’re going to see more companies doing this.”
She also noted that tokenized financial products, like Franklin Templeton’s tokenized money market fund, could reduce operational costs. This makes professional asset management more accessible to younger investors.