WisdomTree has launched a new platform called WisdomTree Connect to give customers access to tokenized real-world assets.
According to a news release from WisdomTree, the platform seeks to increase the accessibility of tokenized assets for institutional and commercial users, enabling them to link traditional financial products with DeFi systems.
The act of converting conventional assets, such as money market funds, into digital tokens that may be utilized on blockchain networks is known as tokenization.
Users can purchase and keep WisdomTree digital funds in their own digital wallets—which can be self-hosted or managed by a third party—using the new platform.
The platform offers financial institutions and organizations a means to simplify processes that typically take several steps, such as exchanging cryptocurrency for conventional fiat money to purchase financial products.
WisdomTree Connect will solve this by removing a few steps and enabling businesses to buy yield-generating products straight through blockchain technology.
Businesses that use stablecoins, a type of cryptocurrency with a fixed value, can purchase goods like the WisdomTree Government Money Market Digital Fund without exiting the blockchain network.
The CEO of WisdomTree, Jonathan Steinberg, expressed confidence in July that more regulatory certainty will drive the use of cryptocurrencies.
Additionally, he projected that tokenization and other tendencies will lead to the mainstreaming of cryptocurrency as an asset class.Â
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According to the announcement, WisdomTree Connect will first be accessible via a website and API, with ambitions to increase user interaction.
The USDC stablecoin, which is correlated with the US dollar, will be accepted for payment on the platform.
For users that need to convert between money and cryptocurrency, this tool increases flexibility. The Ethereum blockchain will first be used to create platform tokens, with support for other blockchains to come.
The goal of WisdomTree’s new infrastructure is to close the gap between traditional and decentralized finance by providing organizations and enterprises with a safe, on-chain means of obtaining traditional financial goods.
The NYDFS granted WisdomTree permission to function as a limited liability trust corporation in March, enabling it to provide cryptocurrency services, including reserves management and stablecoin issuance.
In addition, the company released the WisdomTree Prime app. Following the SEC’s earlier denials, it is still working to promote tokenized asset management and a spot Bitcoin ETF.
