WisdomTree Prime and WisdomTree Connect: 2025 Outlook

2024 was a big year for our digital asset and RWA tokenization efforts. New things take time and, over the course of 2024, we made progress on multiple dimensions.Some of the highlights:

• WisdomTree received a trust company charter by the New York State Department of Financial Services for WisdomTree Digital Trust Company, LLC.
• WisdomTree Prime®, our U.S. retail app, added a number of new features, including the Earn-until-you-Spend functionality with the WisdomTree Government Money Market Digital Fund (WTGXX, our tokenized money market fund) and the WisdomTree Prime Visa® Debit Card.
• WisdomTree Connect™, our B2B and B2B2C platform, launched with WTGXX on Ethereum, and we were proud to submit our response to the Spark Tokenization Grand Prix, a process by which Sky would onboard up to $1 billion in tokenized real-world assets as part of its mission to bring the benefits of DeFi to the mass market.
• We continued to build out our back-end infrastructure, including what we call our Token Issuance Platform which supports our client-facing products.

Entering 2025, I couldn’t be more excited about the overall environment. Obviously, bitcoin and other crypto asset prices have risen – this isn’t news. The chart I prefer to look at is the continued growth of stablecoins. According to our friends at Artemis Analytics, stablecoin AUM across public blockchains crossed $200 billion in January, an all-time high. Undoubtedly, stablecoins are being used for crypto asset trading today. Additionally, they are increasingly being used for payments, store of value, and other use cases that compete with “traditional finance.”The Stablecoins: The Emerging Market Storyby authors from Castle Island Ventures, Brevan Howard Digital and Artemis Analytics¹ covers this in greater detail than I could.Why is this important? I view stablecoins as a proxy for the usage of public blockchains beyond “token prices go up”. In some sense, this is true by definition. Given my role, I’m often asked about proof of demand for RWA tokenization, and the answer to me is obvious – stablecoins. With our RWA tokenization initiative, we want to serve stablecoin users, providing them the ability to earn yield and diversify to other assets, all through their preferred onchain experience. We also want to serve stablecoin issuers who are looking for more convenient and efficient options to invest their reserves. As the stablecoin market grows, we expect to grow.Related to this point, I think it’s worth those of us at “traditional finance” firms reflecting on what we’re even trying to do with tokenization anyway. Often, I hear other firms talk about their rationale for embarking on their firm’s journey in blockchain and tokenization boil down to “we can save a couple basis points in costs.” Setting aside if that statement is true or not, I think it wholly misses the point. Public blockchains are more about the connectivity with users and other applications – no walled gardens – than improvements within a walled garden. The ability to elegantly enable peer-to-peer transfers of tokenized value is critical to this point.For our clients, I hope all this infrastructure work leads to a simple feeling – control of your money.With this context, I’ll highlight a few catalysts for WisdomTree digital assets in 2025, both in the broader environment and for our own product development:

• New York has been a leader at the state level in stablecoin regulatory clarity. With change in Washington, I expect U.S. dollar denominated stablecoins to be a focus at the federal level as well.
• As more people come onchain, through hosted and self-hosted wallets, the addressable market for our products will continue to grow.
• We support orders via stablecoin (USDC) today on WisdomTree Connect. To serve onchain retail users, we will be adding stablecoin and crypto onramps and offramps to WisdomTree Prime.
• In the past, our work has been on Stellar and Ethereum. We believe in a multi-chain future – to the extent blockchains meet our technical and risk framework, we want to support demand on these blockchains. Look forward to more news here in the coming weeks.
• Native peer-to-peer transferability to other known users is part of the functionality associated with WTGXX via WisdomTree Connect today. I think we’ve done this in an elegant way, and it sets the foundation for expansion of this functionality to retail users via WisdomTree Prime in the future.

With these and other catalysts, I expect 2025 to be an inflection year for WisdomTree and the broader group of firms working on RWA tokenization. Thank you to those who have been on this journey with us, both our WisdomTree Prime users and our growing roster of WisdomTree Connect clients as well. Source(s): ¹ Castle Island Ventures, Brevan Howard Digital, and Artemis Analytics. The Stablecoins: The Emerging Market Story. Castle Island Ventures, 12 Sept. 2024, https://castleisland.vc/wp-content/uploads/2024/09/stablecoins_the_emerging_market_story_091224.pdf. PRODUCTS AND SERVICES AVAILABLE VIA WISDOMTREE PRIME AND WISDOMTREE CONNECT:NOT FDIC INSURED | NO BANK GUARANTEE | NOT A BANK DEPOSIT | MAY LOSE VALUE | NOT SIPC PROTECTED | NOT INSURED BY ANY GOVERNMENT AGENCY WisdomTree Digital Funds are distributed by WisdomTree Securities, Inc., Member FINRA.FINRA’s BrokerCheck – check the background of this firm or your investment professional on FINRA’s BrokerCheck. 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The WisdomTree Prime Visa Debit card is issued by Stride Bank N.A., Member FDIC, pursuant to a license from Visa USA Inc.Digital assets (e.g., bitcoin and ether) are considered to be highly speculative, involve a high degree of risk and have the potential for loss of the entire investment. Digital assets are subject to a number of risks, including price volatility. Transactions in digital assets may be irreversible, and accordingly, losses due to fraudulent or accidental transactions may not be recoverable. Legislative and regulatory changes or actions at the state, federal, or international level may adversely affect the use, transfer, exchange and value of virtual currency.There are risks associated with investing, including possible loss of principal.A blockchain is an open, distributed ledger that digitally records transactions in a verifiable and immutable (i.e., permanent) way using cryptography. 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