WisdomTree Tokenizes $1 Trillion Private Credit Market on Ethereum and Stellar

WisdomTree has launched a new tokenized investment vehicle, the WisdomTree Private Credit and Alternative Income Digital Fund (CRDT), bringing the substantial private credit market onto blockchain rails. This innovative fund, available on both the Ethereum and Stellar blockchains, aims to democratize access to a traditionally exclusive asset class, allowing investments with a minimum of just $25.

Key Takeaways

• WisdomTree launches the CRDT fund, tokenizing private credit on Ethereum and Stellar.

• The fund offers exposure to the private credit market with a low minimum investment of $25.

• CRDT tracks the Gapstow Private Credit and Alternative Income Index.

• The initiative aims to increase transparency, shorten settlement cycles, and broaden accessibility to private credit for crypto-native investors.

Bringing Private Credit On-Chain

Private credit, a rapidly expanding sector of global finance valued at over $1 trillion, involves debt financing provided outside of traditional banking systems. WisdomTree's CRDT fund seeks to tap into this market by offering a transparent, blockchain-based structure. This move aligns with the broader trend of tokenizing real-world assets (RWAs), a sector that has already seen significant growth in on-chain value.

Accessibility and Investor Benefits

Will Peck, Head of Digital Assets at WisdomTree, highlighted that CRDT "unlocks access to one of the most coveted asset classes – alternatives – directly onchain." By expanding its range of tokenized funds, WisdomTree is providing crypto-native investors with the opportunity to diversify their portfolios with exposures previously reserved for institutional investors. The fund mirrors the performance of the Gapstow Private Credit and Alternative Income Index (GLACI), offering yield potential in a modern, tokenized format.

Jeremy Schwartz, Global Chief Investment Officer at WisdomTree, added, "For four years, we've been proud to make this space more accessible to the individual investor through our ETF, and now CRDT is able to deliver yield potential in a modern, tokenized fund."

Blockchain Infrastructure

Ethereum and Stellar were chosen for their robust smart contract capabilities and established ecosystems. Ethereum's widespread adoption and DeFi integration make it suitable for tokenized financial products, while Stellar's low transaction fees and high throughput ensure global accessibility. The fund features instant settlement for subscriptions (T+0) and two-day settlements for redemptions (T+2), offering enhanced liquidity compared to traditional private credit investments.

Market Context

The launch of CRDT follows a wave of tokenization initiatives from major financial institutions. WisdomTree's move positions it as a leader in bridging traditional finance with blockchain technology, making alternative investments more accessible and compliant within the digital asset ecosystem.

Sources

• WisdomTree launches blockchain-based CRDT private credit fund, CryptoSlate.

• WisdomTree Debuts Tokenized Private Credit Fund on Ethereum, CoinCentral.

• WisdomTree launches tokenized private credits on Ethereum and Stellar, Mitrade.