WisdomTree Connect Expands to Base, Arbitrum, Avalanche, and Optimism, Enhancing Institutional Access to Tokenized Funds
WisdomTree is broadening its reach in the digital asset space, expanding its WisdomTree Connect platform to additional blockchain networks, including Arbitrum, Base, Avalanche, Ethereum, and Optimism. Previously available only on Ethereum, this expansion aligns with the company’s commitment to being “chain agnostic,” according to Maredith Hannon from WisdomTree. By integrating with multiple EVM-compatible chains, the firm aims to enhance accessibility and provide seamless connectivity for institutional investors.
Meeting Institutional Demand for Tokenized Funds
The move follows increasing institutional interest in tokenized funds, which led WisdomTree to launch 13 tokenized funds on its Real-World Asset (RWA) platform. These offerings enable investors to build diversified on-chain portfolios, incorporating equity index funds, fixed-income funds, and asset allocation funds. A key component of this suite is WisdomTree’s flagship money market fund, WTGXX.
Institutional clients have been seeking alternatives amid declining yields, driving demand for higher-yield options beyond traditional fixed-income products. Hannon noted that the expansion of WisdomTree Connect allows investors to construct diversified portfolios similar to those in traditional asset management, while maintaining on-chain accessibility and self-custody.
A “Tech-First” Approach to Wallet Infrastructure
WisdomTree Connect operates with a “tech-first” philosophy, enabling clients to control wallet infrastructure. Instead of relying on conventional whitelists, the platform employs soulbound NFTs to tag wallets as part of the WisdomTree network. This system facilitates peer-to-peer transfers within designated Connect wallets, fostering a more efficient and secure digital ecosystem.
“This is just the beginning,” Hannon explained. “It allows clients to build a network of networks. If a financial institution develops its own identity solution, we can integrate and organically bring more investors on-chain.”
Broader Strategic Initiatives
Beyond this latest expansion, WisdomTree has been actively engaging in broader blockchain initiatives. The company has applied for its Government Money Market Digital Fund to be used as a reserve asset for Frax USD and has also sought investment from Arbitrum’s RWA ecosystem. Despite its growing market presence, WisdomTree’s WTGXX fund, valued at $108 million per rwa.xyz, remains smaller than comparable offerings from industry giants like Franklin and BlackRock.