WisdomTree Connect Expands to Support Arbitrum, Avalanche, Base and Optimism Blockchains

• WisdomTree Connect now offers 13 SEC-registered tokenized funds across five blockchains.
• The platform expansion includes Arbitrum, Avalanche, Base, and Optimism blockchains.
• WisdomTree’s tokenized funds grew to nearly $130 million in AUM, up from $15 million.

Asset management firm WisdomTree expanded its institutional investment platform to support diverse blockchain networks through new functionality. The platform started on Ethereum but added support for Arbitrum, Avalanche, Base and Optimism.

The expansion of WisdomTree Connect reflects the company’s mission to broaden access to its 13 tokenized funds across multiple investment strategies, including money markets, equity indices and fixed income.

Expansion of WisdomTree Connect Platform

The firm implements strategic expansion steps to fulfill expanding institutional requirements for tokenized assets. The platform extends fund options through five different blockchains which enables investors to manage funds either through U.S. dollars or Circle’s USDC stablecoins.

This feature allows clients to manage their tokenized funds in various ways that suit their needs. Platform investors maintain financial freedom through third-party wallet holdings and self-custodial wallet solutions which creates flexibility for institutional users.

The newly added blockchains—Arbitrum, Avalanche, Base and Optimism—are expected to enhance the platform’s reach. The asset manager’s Head of Business Development, Digital Assets, Maredith Hannon, pointed out the need to offer investors a choice as to which blockchain to invest in. The expansion enables investors to trade on the tokenized funds over different networks without leaving their original platforms, increasing user experience on board.

Tokenized Funds and Investment Strategies

All tokenized funds under WisdomTree Connect have expanded into multiple investment options. The WisdomTree Government Money Market Digital Fund (WTGXX) represents a short-term government security fund while the firm’s 500 Digital Fund (SPXUX) and the WisdomTree Technology & Innovation 100 Digital Fund (TECHX) form part of its equity index fund offerings. Additionally, fixed income offerings linked to various Treasury durations and inflation-protected securities are available.

The investment funds follow the Investment Company Act 1940 to register with the U.S. Securities and Exchange Commission (SEC) and maintain regulatory compliance standards. The asset manager’s entry into tokenized assets demonstrates a business trend that asset managers across the financial industry follow by incorporating traditional financial instruments into blockchain technology.

Growing Interest in Tokenized Assets

The growth of the platform and its assets under management show stronger institutional demand for tokenized assets. The asset manager’s tokenized fund assets managed over $130 million, transforming from the initial value of $15 million at the beginning of the year.

Ondo Finance’s strategic partnership with WisdomTree generated this boost by utilizing over $100 million from one of the money market funds to provide collateral for its digital offerings.