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Your First Captivating Topic of the Week

🚀 WisdomTree Launches Institutional Platform: WisdomTree Connect

WisdomTree is a renowned asset manager with ~$110B in assets under management (AUM) globally. Even with such an institutional background they weren’t afraid to get their hands on blockchain technology as they rolled out WisdomTree Prime in 2023. This is their retail-friendly app which hosts the firm’s 13 tokenized 40 Act funds, available to investors across most states in the US (including New York).

What about institutional access? WisdomTree thought of their peers too by announcing their new WisdomTree Connect platform. This is available through web portal and APIs, making it easier for businesses to gain access to tokenized real world assets (RWAs)!

What can onboarded users can expect?

• First Fund Available: WisdomTree Government Money Market Digital Fund (WTGXX) on Ethereum - More Details Below

• Support for Own Wallet Infrastructure: Self-Hosted or 3rd-Party Custodial Wallet Service

• 24/7/365 Peer-to-Peer Transfers - Onboarded and Eligible Users

• Fiat-to-Crypto On and Off Ramps

• Access via Other Customer-Facing Platforms and Apps (B2B2C) - Coming Soon

• Support Decentralized App (dApp) Interaction - Future Plans

These features will allow business and institutional users to leverage a similar technology as retail users do via WisdomTree Prime for their own purposes. One of those cited in the press release is cash management via WTGXX. The idea is that you no longer have to go off-chain to participate in a yield-generating asset, but rather do it directly and compliantly via WisdomTree Connect.

Why does WTGXX sound familiar?

This is one of the 13 tokenized funds WisdomTree has available on WisdomTree Prime, the retail-oriented app. Like the others, this money market fund was originally issued on the Stellar blockchain but it’s on Ethereum for WisdomTree Connect users.

Looking at the onchain data, we noticed that on September 18th (announcement date), ~$5.19M worth of WTGXX was burned from Stellar and a similar amount was minted on Ethereum in a single transaction plus other mints.

Why does Connect use Ethereum instead of keeping the funds on Stellar? Will WisdomTree Prime and WisdomTree Connect users be able to transact with each other one day?

Keep an eye out for an interview with WisdomTree’s Maredith Hannon on this upcoming Friday’s Security Token Show where I’ll try to get the answers for you!

This is not financial advice.

A Message From The TokenizeThis Workshop Tour

The TokenizeThis Workshop is going on tour across the US!

Do you or someone you know have assets you’d like to tokenize? Not sure how to do so?
In order to take advantage of this new burgeoning technology, one must understand beyond the technicals and learn about the market, the new procedures, and the best practices to follow. This workshop is for you!

Composed of 5 sessions, the TokenizeThis Workshop is a full day masterclass focuses on an industry overview, the tokenization lifecycle, and liquidity strategies to name a few. Interested in joining us? Use WD15 for 15% off!

Your Second Captivating Topic of the Week

🎵 Polytrade Distributes Music Royalties: The Weeknd, Justin Bieber, Rihanna, and more

Music royalties and other intellectual property are prime for tokenization as they’re assets hard to access for retail participants, yet tend to be filled with prospects from that base…AKA fans!

Just a couple days ago we saw Polytrade has partnered with Anotherblock as their official royalty distribution partner, meaning payouts will continue being recorded onchain but under Polytrade’s operations. Anotherblock will continue their role as collection partner (collecting payments from the rights holders).

What kinds of royalties are available?

Here’s an example of the available assets which come from artists like Justin Bieber, Rihanna, Martin Garrix, and my personal favorite… The Weeknd.

You’ll notice a couple things:

• They’re referenced as NFTs

• There’s a transition from Ethereum to Base (burn the Ethereum ones, airdrop the Base ones)

Are these royalties considered securities? Full disclosure, I’m not a lawyer.
Well the IP seems to still be owned by the rights holders that Polytrade references and the royalties are sold to the NFT holders. Under the Benefits section of the press release, they included that they’re “making it easier for investors to buy, sell, and trade their holdings.”

Royalties on their own aren’t necessarily securities but when they start being securitized it starts crossing that line… Is that what’s happening here? Again I’m not a lawyer so do your own research.

From a conceptual standpoint, bringing IP on-chain seems to be a great idea! We’ve seen others do this like Pressman Films currently raising through Republic and this allows creators to connect with their fans on a new level… giving them a vested interest in their work!

Payments recorded on-chain gives another form of transparency (amounts, missed payments, etc.). Anotherblock’s transition announcement specifies some tracks that have “historically experienced issues with timely royalty payments.”

This is not financial advice.

Companies of the Week

Herwig’s Pick: WisdomTree Connect

Find out why and more every Friday live at 2pm EST on LinkedIn or X/ Twitter. Past episodes available on Youtube or your favorite podcast platform! 

Reports

RWA Securities Market Update: August 2024

We're excited to release the August 2024 edition of our RWA Securities Market Update report, which features benchmarks against the CoinDesk 20 Index (CD20)! In this month’s market report, we have meticulously tracked 632 security tokens spanning across 35 marketplaces and 10 blockchains.

Sections include:

• Key Takeaways

• Quantitative Highlights

• Asset Class Breakdown

• On-Chain Liquidity Products

• New Tokens and Announcements

State of the Tokenization Industry 2024 Report

We are very excited to publish our State of the Tokenization Industry 2024 report tomorrow with our sponsor SteelWave Digital! The Security Token Market team covers this year’s headlines and key takeaways, sorted into the following categories:

Search away, share it with a colleague, and revisit the same link for future updates!

TokenizeThis 2024: Highlights and Key Takeaways Report

The TokenizeThis 2024 Conference Highlights Report is Now Available! This was the industry’s event of the year with 500+ registered attendees, 40+ speakers, and 20 sessions & side events in Miami, FL!

There was so much to do you may have missed some panels but not to worry, the STM Team has put together a summary of it all just for you.

This is not financial or investment advice.