WisdomTree is expanding its institutional investment platform WisdomTree Connect to include tokenized funds on multiple blockchain networks, offering a broader selection of real-world assets and expanded investment strategies.
WisdomTree is expanding its institutional investment platform WisdomTree Connect beyond Ethereum to include Arbitrum, Avalanche, Base, and Optimism.
A blockchain network is a decentralized system that allows multiple computers to record and verify transactions across a network.
It uses cryptography to secure and validate each block of data, creating a permanent and unalterable ledger.
This technology enables peer-to-peer transactions without the need for intermediaries, such as banks or governments.
Blockchain networks can be public, like Bitcoin, or private, used by companies for internal data management.
The firm now offers a broader selection of tokenized funds, including equity indexes and fixed income strategies. The platform claims the bragging rights of offering ‘the most extensive suite of tokenized real-world assets (RWA) available to institutions,’ with 13 tokenized funds across various investment strategies such as money market, equity index, and fixed income.
Benefits of Asset Tokenization
Asset tokenization has the potential to become a trillion-dollar market as traditional financial firms increasingly place financial instruments on blockchain rails for operational gains. Investors can interact with the funds through U.S. dollar or Circle’s USDC stablecoins, with holdings accessible in third-party and self-custodial wallets.
Asset tokenization is a process that converts physical or digital assets into a unique, tradable token.
This token represents ownership rights and can be transferred digitally.
Tokenized assets can include real estate, art, commodities, and more.
Blockchain technology enables secure, transparent, and efficient transfer of ownership.
Asset tokenization provides liquidity to illiquid assets, reduces transaction costs, and increases accessibility for investors.
Expanded Platform Features
The expanded platform features include:
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A tokenized money market fund offering exposure to short-term government securities
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Equity index funds tracking major stock market indices
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Fixed income funds tied to various Treasury durations and inflation-protected securities
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Asset allocation funds
All offerings are registered with the Securities and Exchange Commission (SEC) under the Investment Company Act of 1940.
Growing Popularity of Asset Tokenization
Asset tokenization is gaining traction among asset managers as they increasingly place traditional financial instruments on blockchain rails to pursue operational gains. It’s a rapidly growing sector with the potential to become a trillion-dollar market as all kinds of real-world assets move on-chain.
Blockchain technology has experienced rapid growth, with its market value increasing from $1.4 billion in 2017 to over $150 billion in 2022.
The adoption rate of blockchain solutions has accelerated across various industries, including finance, supply chain management, and healthcare.
According to a report by Gartner, the global blockchain market is expected to reach $39.7 billion by 2025.
Key factors driving this growth include increased investment in research and development, improved scalability, and growing awareness among businesses and governments.
