WisdomTree Enters Tokenized Credit Market with New Fund

WisdomTree Launches Tokenized Private Credit Fund

WisdomTree has entered the tokenized asset space with the launch of the WisdomTree Private Credit and Alternative Income Digital Fund (CRDT). This new fund provides investors with exposure to private credit through a tokenized structure.

CRDT tracks a basket of 35 publicly traded closed-end funds, business development companies, and real estate investment trusts, according to a Bloomberg report. This approach allows for diversified exposure to alternative income streams.

Key Features of CRDT

• Low Minimum Investment: Available with a minimum investment of just $25.
• Quick Redemption: Offers two-day redemption for investors.
• Benchmark Tracking: Follows a benchmark previously used by WisdomTree's traditional ETF (WisdomTree Private Credit and Alternative Income Fund, launched in 2021).

The move highlights the growing interest in private credit, as investors seek yield-generating assets outside of traditional banking channels.

"It’s really just about bringing the asset class to a whole universe of different investors,” stated Will Peck, head of digital assets at WisdomTree.

WisdomTree has been actively expanding its range of tokenized investment vehicles, including those focused on money market funds, fixed income, and equities. This new fund further solidifies their commitment to digital assets.

Tokenization Trend Gaining Momentum

WisdomTree's launch reflects a broader trend among major financial institutions. BlackRock, for example, manages a $2 billion tokenized money market fund, and Fidelity has also launched its own tokenized money market fund on Ethereum. These developments indicate a serious interest in real-world asset (RWA) tokenization within traditional finance, despite the current size being small compared to the broader ETF and mutual fund markets.

As the tokenization of real-world assets gains traction, ensuring the security and reliability of the underlying blockchain infrastructure becomes increasingly important. Platforms like Codeum offer services such as smart contract audits and KYC solutions that can help maintain the integrity of these tokenized assets.