WisdomTree Digital Assets – A Great Year, and We’re On To 2026

Stablecoins and tokenization have become one of the most talked about trends in financial services these past twelve months. Looking back at this time last year, I wrote that I expected 2025 to be an “inflection year” for both our efforts and those of all firms working on RWA tokenization. I’d say 2025 was that, and then some. Some highlights across WisdomTree Prime and WisdomTree Connect from 2025: – RWA.xyz does a great job covering this burgeoning space. I’ve appreciated their call out of Distributed vs. Represented value in tokenized assets (we focus on Distributed Value, where control of the asset sits onchain). RWA.xyz calculates that the year ends at approximately $19 billion in tokenized RWA, excluding stablecoins. Stablecoins are at approximately $300 billion. Both numbers are up significantly from the start of the year. The industry is clearly growing. – WisdomTree Digital Assets grew significantly as well. At the start of 2025, we had approximately $30 million across our range of tokenized exposures. We ended the year at $770 million in AUM, driven by a breakout year for our tokenized money market fund WTGXX. – Industry wide, we’re seeing strong adoption of tokenized money market funds, especially as the passage of the GENIUS Act has unlocked greater usage of stablecoins. We’ve seen our clients using WTGXX across three primary use cases – stablecoin reserve management, treasury management, and collateral. We’re focused on expanding functionality across these three use cases and serving a broader set of users as more people and businesses come onchain. – More broadly, we have a range of tokenized exposures that can meet a client’s needs for onchain investing. In historical context, short term rates have been elevated these past few years. Particularly as rates come down, we think clients are going to be looking for additional yield-bearing and diversifying assets onchain – we have a suite of products to meet their needs. – We’re now on more blockchains than ever before. WisdomTree’s tokenized products are available on seven public blockchains – Ethereum, Arbitrum, Avalanche, Base, Optimism, Plume, and Stellar. And we’ll be on Solana shortly as well. – While a lot of the demand has been institutionally driven, we continue to focus on serving retail early adopters as well. WisdomTree Prime has added a number of features focused on serving these use cases, including self-custody wallet support. For example, users can transfer their WTGXX fund shares from WisdomTree Prime’s custodial wallet and hold in their own self-custody wallet on any of our supported blockchains. – With our announced relationship with BNY for Banking-as-a-service functionality, WisdomTree Prime users can connect onchain rails with traditional fiat rails. This integration allows a user to seamlessly onramp USDC and PYUSD across blockchains into an account that also supports banking connectivity, with no burn fees. In my view, this is the best cross-chain stablecoin connectivity solution available to retail users in the U.S. In 2026, I expect more of the same. At a high level, we’re focused on improving functionality in a few main areas: Liquidity of fund shares is a major focus for WisdomTree. Over the past two decades, investors have demonstrated a clear preference for intraday trading of assets. We think this preference is only clearer with the 24/7, instant nature of onchain assets. In the past, we’ve alluded to enabling greater intraday liquidity of the shares of WTGXX. In early 2026, we’re looking forward to sharing more. And we’re not stopping there – we believe that investors are demanding of this functionality across a range of registered funds and, as the market develops, we intend to provide it in a well-structured way. Digital identity is one of the next key enablers for onchain finance. Digital identity is a broad term. I’m not referring to a government-led, all-encompassing form of digital identity; rather, to the ability for responsible financial institutions to attest to information, or for an individual to selectively share relevant information in a scalable, repeatable way with financial services providers. Digital identity has been talked about for years in an almost mythic sense. As more assets and more services come onchain, users are going to want to be able to access these assets and services, including with their own self-custody wallet, without needing to go through a full onboarding experience each time. We think there are ways for financial service providers to enable a more user-friendly experience while still meeting their fundamental legal and regulatory obligations related to KYC/AML. For WisdomTree, this unlocks a lot of the promise of blockchain – no walled gardens – even within regulated financial services. It’s still early innings for RWA tokenization – I like the term green shoots. Things are moving quickly – across regulation and product development. While the industry chatter can (unsurprisingly) sometimes get ahead of where things are in reality, we’re seeing a lot of opportunity and looking forward to serving many of the early adopter firms and individuals investing onchain. PRODUCTS AND SERVICES AVAILABLE VIA WISDOMTREE PRIME: NOT FDIC INSURED | NO BANK GUARANTEE | NOT A BANK DEPOSIT | MAY LOSE VALUE | NOT SIPC PROTECTED | NOT INSURED BY ANY GOVERNMENT AGENCY Investors should carefully consider the investment objectives, risks, charges and expenses of the Funds before investing. U.S. investors only: To obtain a prospectus containing this and other important information, please call 866.909.WISE (9473), or click here to view or download a prospectus online. Read the prospectus carefully before you invest. There are risks involved with investing, including the possible loss of principal. Past performance does not guarantee future results. Blockchain technology is a relatively new and untested technology, with little regulation. Potential risks include vulnerability to fraud, theft, or inaccessibility, and future regulatory developments effect its viability. You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not a bank account and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s adviser is not required to reimburse the Fund for losses, and you should not expect that the adviser will provide financial support to the Fund at any time, including during periods of market stress. The Fund is actively managed using proprietary investment strategies and processes. There can be no guarantee that these strategies and processes will be successful or that the Fund will achieve its investment objective. Poor security selection could cause the fund to underperform relevant benchmarks or other funds with a similar investment objective. U.S. Treasury obligations may provide relatively lower returns than those of other securities. Changes to the financial condition or credit rating of the U.S. government may cause the value to decline. Fixed income securities are subject interest rate, credit, inflation, and reinvestment risks. A decline in the credit quality of an issuer or a provider of credit support or a maturity-shortening structure for a security can cause the price of a money market security to decrease. Generally, as interest rates rise, the value of fixed-income securities falls. Cybersecurity attacks affecting the Fund’s third-party service providers, App, blockchain network, or the issuers of securities in which the Fund invests may subject the Fund to many of the same risks associated with direct cybersecurity breaches. Tokenization: The process of creating a digital representation of an asset (in this case, mutual fund shares) using a token recorded on a blockchain. The token generally serves as a record of ownership to the asset. Tokenization of an asset does not change the nature of asset. WisdomTree Digital Funds are distributed by WisdomTree Securities, Inc., Member FINRA.