On September 18, WisdomTree launched WisdomTree Connect, an Ethereum-based platform aimed at tokenizing real-world assets (RWA). This platform allows customers to engage with WisdomTree-issued tokens across multiple blockchains.
Accessible On-Chain Yield-Generating Products
WisdomTree Connect enables businesses to access yield-generating products on-chain, incorporating blockchain-integrated recordkeeping. Companies will receive digital records of WisdomTree’s digital funds in their wallets. The tokens can either be self-hosted or stored with third-party custodians.
Business Opportunities and B2B Solutions
Will Peck, the Head of Digital Assets at WisdomTree, highlighted that the increasing interest in tokenized real-world assets prompted the creation of this platform. According to Peck, this development will create new business-to-business (B2B) and business-to-business-to-consumer (B2B2C) opportunities. Firms can now remain within the blockchain ecosystem while accessing WisdomTree’s digital funds.
Web Portal and API Access with Future dApp Integration
Initially, WisdomTree Connect provides access through a web portal and API. Future plans involve integrating decentralized application (dApp) interactions. Institutional users will have the option to purchase or redeem funds using US dollars or USD Coin (USDC) stablecoin.
Complementary to WisdomTree Prime
WisdomTree Connect complements the company’s existing direct-to-retail app, WisdomTree Prime, offering a broad range of digital asset solutions to a diverse customer base.
WisdomTree’s Potential Shift to Ethereum
According to RWA.xyz, the total market cap of tokenized U.S. Treasuries is over $2.2 billion. WisdomTree currently contributes $12.2 million to this value through seven tokenized products. However, this does not place the company among the top 10 issuers of tokenized assets.
WisdomTree’s offerings include products ranging from short-term to long-term Treasuries, with liquidity periods extending from 7 to 10 years. Interestingly, six of the seven products are issued on the Stellar blockchain, while the tokens are minted on Ethereum using WisdomTree Connect.
Stellar and Ethereum’s Role in Tokenized U.S. Treasuries
Stellar is currently the second-largest blockchain for U.S. Treasuries tokenization, with $426.5 million worth of tokenized T-bills, significantly driven by Franklin Templeton’s FOBXX token. On the other hand, Ethereum holds over $1.6 billion in digital U.S. Treasury representations. BlackRock leads with $521 million in tokenized shares for its BUIDL fund.
A Possible Migration to Ethereum
Considering WisdomTree’s interest in integrating its tokens with decentralized applications, a migration to Ethereum could be a strategic move. Ethereum’s decentralized ecosystem is the largest by total value locked (TVL), making it an ideal platform for WisdomTree’s future plans.
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