WisdomTree launched an ethereum-based platform for tokenized real-world assets (RWA) called WisdomTree Connect September 18th.
The goal of the platform is to allow customers to interact with any token issued by WisdomTree on different blockchains.
WisdomTree Connect enables businesses to access yield-generating products on-chain with a blockchain-integrated ledger system. Businesses will receive digital records of WisdomTree’s digital funds in their wallets. Tokens can be hosted on their own servers or third-party custodian services.
Will Peck, director of digital assets at WisdomTree, said the growing interest in tokenized real-world assets prompted the creation of WisdomTree Connect.
He added that this opens up additional business-to-business (B2B) and business-to-business-to-consumer (B2B2C) opportunities for WisdomTree to provide on-chain businesses with access to digital funds without leaving the ecosystem.
The announcement explains that the platform initially supports access to APIs and web portals, with plans to explore interactions with decentralized applications (dApps) in the future. Institutional users can purchase or redeem via US dollars or the USD Coin (USDC) stablecoin.
WisdomTree Connect complements the company’s direct-to-retail application, WisdomTree Prime, offering digital asset solutions for the full spectrum of customers.
Possible migration of WisdomTree to ethereum
According RWA.xyzThe total market capitalization of tokenized U.S. Treasury bonds exceeds $2.2 billion. WisdomTree currently offers seven different tokenized products, totaling $12.2 million of that value. This leaves the company outside of the top 10 issuers by total tokens.
The asset manager's products range from short- and long-term Treasury bonds, with liquidity maturities of between 7 and 10 years.
Notably, six of the seven products offered by WisdomTree are issued on the Stellar blockchain, while the tokens are minted by WisdomTree Connect using ethereum.
While the announcement reveals plans to add support for additional blockchains in the future, it does not clarify whether WisdomTree’s current products will be migrated to ethereum.
Stellar is currently the second-largest blockchain infrastructure for tokenizing U.S. Treasury bonds, with $426.5 million worth of Treasury bills deployed as tokens, largely driven by Franklin Templeton’s FOBXX tokenized fund.
Meanwhile, ethereum holds over $1.6 billion in digital representations of U.S. Treasury bonds, while BlackRock leads the way with over $521 million in tokenized stocks for its BUIDL fund.
Therefore, considering WisdomTree’s plans to integrate its tokens with dApps, a migration to ethereum would be appropriate, as its decentralized ecosystem is the largest by total value locked.
