WisdomTree launched an Ethereum-based platform for tokenized real-world assets (RWA), called WisdomTree Connect. September 18.
The purpose of the platform is to allow customers to interact with any token issued by WisdomTree on different blockchains.
WisdomTree Connect gives companies access to revenue-generating products in the chain with blockchain-integrated administration. Businesses receive digital data from WisdomTree’s digital funds in their wallets. The tokens can be self-hosted or held with third-party custodial services.
Will Peck, Head of Digital Assets at WisdomTree, stated that the increasing interest in tokenized real-world assets prompted the creation of WisdomTree Connect.
He added that this opens additional business-to-business (B2B) and business-to-business-to-consumer (B2B2C) opportunities for WisdomTree to provide companies along the chain access to digital funds without leaving the ecosystem.
The announcement explains that the platform will initially support web portals and API access, with future plans to explore decentralized application interactions (dApp). Institutional users can purchase or exchange via US dollars or USD Coin (USDC) stablecoin.
WisdomTree Connect complements the company’s direct-to-retail app, WisdomTree Prime, providing digital asset solutions across the customer spectrum.
Possible migration from WisdomTree to Ethereum
According to RWA.xyzthe total market capitalization of tokenized US Treasuries exceeds $2.2 billion. WisdomTree currently offers seven different tokenized products, accounting for $12.2 million of that value. This places the company out of the top 10 issuers in terms of total tokenized.
The asset manager’s products range from short- to long-term government bonds, with liquidity maturing within seven to ten years.
Notably, six of the seven products offered by WisdomTree are issued on the Stellar blockchain, while tokens are minted by WisdomTree Connect using Ethereum.
While the announcement reveals plans to add support for additional blockchains in the future, it is not clear whether WisdomTree’s current products will be migrated to Ethereum.
Stellar is currently the second largest blockchain infrastructure for tokenization of US Treasuries, with $426.5 million worth of T-bills deployed as tokens, largely boosted by Franklin Templeton’s FOBXX tokenized fund.
Meanwhile, Ethereum owns more than $1.6 billion in digital representations of US government bonds, while BlackRock leads the way with more than $521 million in tokenized shares for its BUIDL fund.
So given WisdomTree’s plans to integrate their tokens with dApps, a migration to Ethereum would be appropriate as its decentralized ecosystem is the largest by total value.