Institutional Investors Can Now Access Tokenized Assets Through WisdomTree’s New Platform
On September 18, asset manager WisdomTree launched WisdomTree Connect. Built on Ethereum, this new platform aims to bring real-world asset (RWA) tokenization to institutional investors.
This move is part of WisdomTree’s broader digital asset strategy, which includes previous ventures such as its spot Bitcoin exchange-traded fund (ETF).
How WisdomTree Connect Expands Access to Tokenized Real-World AssetsBeyond access, firms using WisdomTree Connect can manage tokenized assets in either self-hosted wallets or through third-party custodians. Furthermore, users can purchase and redeem assets using US dollars or the stablecoin USDC. These features provide flexible options for institutions looking to enter the digital asset market.
This platform complements WisdomTree’s retail-focused app, WisdomTree Prime, which provides direct access to digital assets for retail investors. Together, these platforms form a cohesive strategy aimed at integrating traditional finance with blockchain technology for both institutional and retail users.
Read more: What is Tokenization on Blockchain?
As the platform evolves, WisdomTree intends to incorporate decentralized applications (dApps) and broaden its functionality. Currently, access is available through a web portal and API. However, future updates will enable more direct, decentralized interactions with tokenized assets on-chain.
Additionally, the platform plans to support additional blockchains in the future. This upcoming expansion will enhance accessibility for investors.
“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, Head of Digital Assets at WisdomTree, said.
Indeed, the tokenization of real-world assets has attracted attention from several major financial institutions, like BlackRock and Franklin Templeton. BlackRock’s CEO Larry Fink noted that tokenization could reduce settlement costs and increase investor customization. At the same time, Franklin Templeton CEO Jenny Johnson highlighted the broader applications of tokenized assets, such as loyalty programs and NFT royalties.
“It’s this combination of loyalty programs with real-world assets, and I think that you’re going to see more and more companies do this combination,” Johnson added.
Read more: What is The Impact of Real World Asset (RWA) Tokenization?
She also mentioned that tokenized financial products, such as Franklin Templeton’s tokenized money market fund, could lower operational costs and make professional asset management more accessible to younger investors.
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