WisdomTree launches tokenized fund on Ethereum and Stellar…Targets RWA market

Global asset manager WisdomTree has introduced a product that allows investment in the private credit market through a blockchain-based tokenized fund. The minimum investment is $25, marking the beginning of Wall Street's 'tokenized assets experiment.'

According to Bloomberg on the 12th, WisdomTree launched the "WisdomTree Private Credit and Alternative Income Digital Fund" (CRDT) that day. The product tracks an index composed of 35 components including closed-end funds, business development companies (BDC), and real estate investment trusts (REIT). WisdomTree has been operating an ETF based on the same index since 2021.

CRDT is structured to provide distributed ownership through blockchain tokens; investors can participate from a minimum of $25 and can redeem within 2 days. However, it does not directly invest in the underlying loan receivables; it gains exposure through listed products that track them. CRDT will initially be tokenized on the Ethereum and Stellar blockchains, with plans to expand to other networks such as Avalanche.

Will Peck, head of WisdomTree's digital assets division, said, "This product is intended to introduce private credit assets to a new class of investors."

The market size of on-chain tokenized real-world assets (RWA) currently stands at about $28 billion. Including this product, WisdomTree operates a total of 12 tokenized funds, with assets under management of about $900 million. Of this, 90% is institutional capital.

The outlet explained, "Tokenized funds may appear niche at first, like early ETFs, but could change the investment paradigm in the long term."