Expands digital assets opportunity
Enables access to tokenized real world assets (RWA) to broader range of users
Utilizes proprietary tokenization platform and technology infrastructure
WisdomTree, Inc. (NYSE:WT), a global financial innovator, today announced the launch of WisdomTree Connect™, a new platform unlocking tokenized real world assets (RWA) access to a broader range of users. The vision for WisdomTree Connect is to enable customers over time to interact with any WisdomTree-issued token, in any wallet, across supported blockchains.
WisdomTree Connect marks the first time WisdomTree digital funds will be available directly to clients with their own wallet infrastructure, including businesses and other institutional users. Features of this platform will enable WisdomTree to, over time, offer access to digital funds to other customer-facing platforms and apps (B2B2C distribution) and retail users with self-hosted wallets.
Supported by the same proprietary tokenization platform and technology infrastructure as the direct-to-retail app, WisdomTree Prime®, WisdomTree Connect is its direct-to-business counterpart and together the two platforms offer complementary digital assets solutions across the entire customer spectrum.
The platform solves a key problem for firms seeking integration between traditional and decentralized finance. For example, a crypto-native institution looking to purchase a traditional money market fund for a treasury or cash management solution would typically have to sell its stablecoins, send fiat currency to its bank, and then separately purchase a money market fund. WisdomTree Connect solves for this and allows firms to access yield-generating products, such as the WisdomTree Government Money Market Digital Fund (WTGXX), on chain with blockchain-integrated recordkeeping through an easy-to-use gateway focused on security.
"We're thrilled to announce the launch of WisdomTree Connect. With increasing interest in tokenized real world assets, WisdomTree Connect opens up additional business-to-business (B2B) and business-to-business-to-consumer (B2B2C) opportunities for WisdomTree to provide access to digital funds to on-chain firms without leaving the ecosystem," said Will Peck, Head of Digital Assets at WisdomTree.
Users will receive a digital record of the WisdomTree digital funds into their own wallets, which can be self-hosted wallets or held with a third-party custodial wallet service. Digital funds purchased via WisdomTree Connect will be able to be transferred on-chain on a peer-to-peer basis to other onboarded and eligible users 24/7/365.
WisdomTree Connect will initially be available via web portal and API. In the future, WisdomTree is exploring other novel methods of interaction via decentralized application (dApp).
Once onboarded, institutional users will be able to purchase or redeem via US dollars, which can also be facilitated via USDC, a stablecoin that is redeemable 1:1 for US dollars. A separate stablecoin conversion service is made available by WisdomTree Digital Movement, Inc., in which stablecoins (i.e., USDC) are converted into fiat currency (i.e., US dollars) to facilitate a purchase of WTGXX's shares via WisdomTree Transfers, Inc., WTGXX's transfer agent, and vice versa on redemption. The inclusion of features that provide fiat-to-crypto on and off ramps further bridges the gap between traditional and decentralized finance.
Tokens will be initially minted on Ethereum with additional blockchains anticipated to be added over time. With respect to WTGXX, WisdomTree Transfers, Inc. maintains the official record of share ownership via a blockchain-integrated system with respect to each token on the Ethereum blockchain. Smart contracts associated with WisdomTree's tokenized real world assets were created leveraging Token Factory, part of a suite of digital infrastructure capabilities DTCC Digital Assets offers. For more information about WisdomTree Connect, please visit: https://www.wisdomtreeconnect.com.
The initial tokenized real world asset available via the WisdomTree Connect platform will be WTGXX. More information about WTGXX can be found here. The Ethereum token address for WTGXX is 0x1feCF3d9d4Fee7f2c02917A66028a48C6706c179.
About WisdomTree
WisdomTree is a global financial innovator, offering a well-diversified suite of exchange-traded products (ETPs), models, solutions and products leveraging blockchain technology. We empower investors and consumers to shape their future and support financial professionals to better serve their clients and grow their businesses. WisdomTree is leveraging the latest financial infrastructure to create products that provide access, transparency and an enhanced user experience. Building on our heritage of innovation, we are also developing and have launched next-generation digital products, services and structures, including digital or blockchain-enabled mutual funds and tokenized assets, as well as our blockchain-native digital wallet, WisdomTree Prime® and institutional platform, WisdomTree Connect™.*
*The WisdomTree Prime digital wallet and digital asset services and WisdomTree Connect institutional platform are made available through WisdomTree Digital Movement, Inc., a federally registered money services business, state-licensed money transmitter and financial technology company (NMLS ID: 2372500) or WisdomTree Digital Trust Company, LLC, in select U.S. jurisdictions and may be limited where prohibited by law. WisdomTree Digital Trust Company, LLC is chartered as a limited purpose trust company by the New York State Department of Financial Services to engage in virtual currency business. Visit https://www.wisdomtreeprime.com or the WisdomTree Prime mobile app for more information.
WisdomTree currently has approximately $110.6 billion in assets under management globally.
For more information about WisdomTree, WisdomTree Connect and WisdomTree Prime, visit: https://www.wisdomtree.com.
Please visit us on X, formerly known as Twitter, at @WisdomTreeNews.
WisdomTree® is the marketing name for WisdomTree, Inc. and its subsidiaries worldwide.
PRODUCTS AND SERVICES AVAILABLE VIA WISDOMTREE PRIME:
NOT FDIC INSURED | NO BANK GUARANTEE | NOT A BANK DEPOSIT | MAY LOSE VALUE | NOT SIPC PROTECTED | NOT INSURED BY ANY GOVERNMENT AGENCY
The products and services available through the WisdomTree Prime app and WisdomTree Connect are not endorsed, indemnified or guaranteed by any regulatory agency.
Important Digital Fund Information
You could lose money by investing in the WisdomTree Government Money Market Fund (WTGXX). Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not a bank account and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund's adviser is not required to reimburse the Fund for losses, and you should not expect that the adviser will provide financial support to the Fund at any time, including during periods of market stress.
Carefully consider the investment objectives, risks, charges, and expenses of the Digital Funds before investing. To obtain a prospectus containing this and other important information, please visit https://www.wisdomtree.com/investments. Read the prospectus carefully before investing.
There are risks associated with investing, including possible loss of principal. The Digital Funds have limited performance history. Blockchain technology is a relatively new and untested technology, with little regulation. Blockchain systems could be vulnerable to fraud, particularly if a significant minority of participants colluded to defraud the rest. Potential risks also include vulnerability to theft, or inaccessibility, and future regulatory developments could affect its viability.
Cybersecurity attacks affecting a Digital Fund's third-party service providers, the application used to transact in Digital Fund shares, blockchain network, or the issuers of securities in which the Digital Fund invests may subject the Digital Fund to many of the same risks associated with direct cybersecurity breaches.
WisdomTree Digital Funds are distributed by Foreside Fund Services, LLC (FFS). Foreside Fund Services, LLC, (FFS) is not affiliated with WisdomTree, Inc. and its subsidiaries, nor any entity mentioned in the press release. FFS does not provide digital wallet or digital asset services.
Category: Business Update
View source version on businesswire.com: https://www.businesswire.com/news/home/20240918119575/en/