WisdomTree has launched the WisdomTree Connect platform, designed to provide access to its regulated real-world asset (RWA) tokens from any wallet or blockchain network.

This platform aims to bridge the gap between traditional finance and decentralized finance (DeFi), enabling crypto-native institutions to access traditional financial products via blockchain.

The introduction of WisdomTree Connect responds to the growing interest in tokenized RWAs, offering new business-to-business (B2B) and business-to-business-to-consumer (B2B2C) opportunities.

The announcement of the platform was made on September 18, and it will initially use third-party custodians to hold users' tokenized investment funds.

This requirement by the U.S. Securities and Exchange Commission (SEC) for tokenized investment funds to be held by qualified custodians has limited adoption among users who prefer self-custody solutions.

Users can store WisdomTree tokenized funds in either self-hosted digital wallets or third-party custodial wallets.

Initially, the platform will utilize the Ethereum blockchain for tokenization, allowing investors to purchase fund tokens using U.S. dollars or USDC stablecoin.

Users will receive a digital record of ownership in their personal wallets, with future plans to allow access via customer-facing platforms and self-hosted wallets.

Tokenized RWAs are rapidly growing in popularity, with many financial institutions and digital asset firms working to bring traditional financial instruments onto blockchain platforms.

Currently, tokenized RWAs, which include assets like financial claims, commodities, and art, have a total value locked (TVL) exceeding $12 billion, representing a potential $30 trillion market opportunity globally.

WisdomTree manages over a dozen tokenized investment funds, including holdings in money market instruments, S&P 500 stocks, and U.S. treasury bonds.

Among the popular tokenized RWAs are the BlackRock USD Institutional Digital Liquidity Fund and Franklin OnChain U.S. Government Money Fund, with assets under management of approximately $520 million and $430 million, respectively.