WisdomTree Expands Its Institutional Tokenization Platform to 13 Funds

Asset management firm WisdomTree (WT) is moving deeper into asset tokenization with expanding its institutional investment platform

Asset management firm WisdomTree (NYSE:WT) is expanding its institutional investment platform, WisdomTree Connect, to include 13 tokenized funds across five blockchain networks, the company said Thursday.

The firm's Connect platform launched in 2023 to provide institutions with seamless access to WisdomTree’s liquid asset classes on third-generation blockchains. It previously focused on Ethereum but now includes Arbitrum, Avalanche (CRYPTO:AVAX), Base and Optimism.

Investors can interact with the funds through U.S. dollar or Circle's (NYSE:AGREE) USDC stablecoins, with their holdings being tracked in third-party and self-custodial wallets.

With these additions, WisdomTree Connect now claims to offer "the most extensive suite of tokenized real-world assets (RWA) available to institutions."

The suite includes a tokenized money market fund, equity index funds, fixed income funds and asset allocation funds. The money market fund, WisdomTree Government Money Market Digital Fund (WTGXX), provides exposure to short-term government securities. Equity index funds such as WisdomTree 500 Digital Fund (SPXUX) and WisdomTree Technology & Innovation 100 Digital Fund (TECHX) track major stock market indices. The fixed income segment includes offerings tied to various Treasury durations and inflation-protected securities.

The offerings are registered with the Securities and Exchange Commission (SEC) under the Investment Company Act of 1940.

Asset tokenization is becoming increasingly popular among asset managers as they seek to place traditional financial instruments on blockchain rails for operational gains. It's a rapidly expanding sector with the potential to become a $1 trillion market as various asset classes, including real estate, bonds, credit and derivatives, are being brought on-chain.