WisdomTree aims to bring autonomy to regulated RWAs.
According to a September 18 announcement, Wisdomtree has launched a tokenized real-world values (RWA) platform designed to allow users to eventually access the asset manager's managed fund tokens from any wallet or blockchain network.
The platform, called WisdomTree Connect, first stores a user's investment funds with third-party custodians by sending a “digital record” to the user's personal wallet, WisdomTree said.
Eventually, Wisdomtree aims to expand access to RWAs “to other customer-facing platforms and apps … and retail users' self-hosted wallets,” he said.
WisdomTree has more than a dozen tokenized funds. Source: WisdomTree
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RWAs – including certified claims on financial assets, commodities or art – already command more than $12 billion in total value locked (TVL), according to RWA.xyz.
They represent a $30-trillion market opportunity globally, Colin Butler, Polygon's global head of institutional capital, told Cointelegraph in August.
The United States Securities and Exchange Commission (SEC) generally requires investment funds to be held by a qualified third-party custodian. This has hindered adoption among crypto-native users who typically prefer to “maintain themselves” in user-managed wallets.
“We envision a world where users can manage their own wallets independently of our wallet environment,” Roger Baiston, head of digital assets at asset manager Franklin Templeton, told Cointelegraph in August.
“We are working closely with the SEC on this capability,” he added.
Franklin Templeton's Benji app is a competitor to Wisdomtree Connect. Source: Benj
Wisdomtree operates more than ten alternative investment funds of various durations ranging from money market instruments, S&P 500 stocks to US Treasury bonds.
Among the most popular tokens are RWAs, which represent claims on off-chain money market funds, which pay legal risk on US dollars.
The largest by assets under management (AUM) are BlackRock USD Institutional Digital Liquidity Fund (BUIDL) and Franklin Onchain US Government Fund (FOBXX), with AUM of approximately $520 million and $430 million, respectively.
WisdomTree's token money fund – Government Money Market Digital (WTGXX) – has become a competitor, with less than $8 million in AUM as of September 18.
By combining with multiple blockchain networks and expanding RWA user-managed wallets, WisdomTree Connect “solves a key problem for companies seeking integration between traditional and decentralized finance,” WisdomTree said.
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