WisdomTree launches platform for real-world tokenized assets

WisdomTree has introduced a new platform called WisdomTree Connect to enable users to access tokenized real-world assets.

According to a press release from WisdomTree, the platform aims to make tokenized assets more accessible to businesses and institutional users, allowing them to integrate traditional financial products with DeFi systems.

Tokenization refers to the process of converting traditional assets, such as money market funds, into digital tokens that can be used on blockchain networks.

The new platform allows users to purchase and hold WisdomTree digital funds in their own digital wallets, which can be self-hosted or managed by a third party. For businesses and financial institutions, the platform offers a way to streamline transactions that would normally require multiple steps, such as converting crypto into traditional fiat money to purchase financial products.

WisdomTree Connect will solve this problem by allowing companies to directly purchase yield-generating products using blockchain technology, thus eliminating many steps.

For example, businesses using stablecoins, which are cryptocurrencies designed to maintain a stable value, will be able to purchase products like the WisdomTree Government Money Market Digital Fund without needing to leave the blockchain ecosystem.

In July, WisdomTree CEO Jonathan Steinberg expressed confidence that crypto adoption would accelerate with increased regulatory clarity. He also predicted that crypto would enter the mainstream as an asset class amid trends like tokenization.

WisdomTree Connect availability

WisdomTree Connect will initially be available via a web portal and API, according to the announcement, with plans to expand how users interact with the platform. The platform will support transactions in the US dollar and USDC (USDC) stablecoin, which is pegged to the US dollar. This feature provides flexibility for users who need to convert between fiat and crypto.

Tokens on the platform will initially be minted on the Ethereum (ETH) blockchain, with additional blockchains supported later. WisdomTree’s new infrastructure is designed to offer businesses and institutions a secure, on-chain way to access traditional financial products, bridging the gap between decentralized and traditional finance.

WisdomTree received approval from the NYDFS to operate as a limited liability trust company in March, allowing it to offer crypto services such as stablecoin issuance and reserve management.

The company also launched its WisdomTree Prime app and is continuing efforts to advance its tokenized asset management and spot Bitcoin ETF following earlier rejections by the SEC.