• WisdomTree launches CRDT to offer retail access to private credit using blockchain tokenization.
• Tokenized private credit reaches $16.7 billion, showing steady growth in digital financial markets.
• Major banks expand into tokenized assets as traditional finance moves gradually onto blockchain platforms.

WisdomTree has introduced a new tokenized fund, the Private Credit and Alternative Income Digital Fund (CRDT). The fund targets retail and institutional investors, offering exposure to private credit markets. This includes credit extended to private corporations, REITs, and business development companies.

Tokenization converts ownership rights into blockchain-based tokens. It allows smaller investors to enter markets once restricted to institutions. CRDT lowers the investment barrier to just $25 and offers redemptions within two days.

The fund follows an index tracking 35 closed-end funds, REITs, and business development companies. WisdomTree already runs a similar ETF, but CRDT marks its expansion into digital assets. CRDT is available on Ethereum and Stellar, with Avalanche support planned.

Growing Adoption Among Major Financial Institutions

Tokenized private credit is gaining traction across the financial industry. Data from rwa.xyz shows the total value of tokenized private credit has reached $16.7 billion. The broader tokenized asset market now stands near $29 billion.

Several traditional institutions have also entered the space. In July, Goldman Sachs and BNY Mellon launched tokenized money market funds for institutional clients. In August, State Street joined JPMorgan’s tokenized debt platform. It became the first custodian and completed a $100 million transaction with OCBC. JPMorgan also partnered with Coinbase to introduce crypto-related features for its customers starting this fall 

BlackRock is exploring tokenized ETFs tied to baskets of equities. Black Rock is still the world’s largest asset player. Janus Henderson Group has tokenized its main credit strategy. Fidelity and VanEck are testing on-chain Treasury solutions. The market remains relatively small compared to traditional funds, but it shows steady growth.

Tokenization Expands Investment Options

Tokenized funds include US Treasury funds, private equity vehicles, and yield-bearing money market instruments. These products aim to modernize financial infrastructure by bringing traditional assets on-chain.

CRDT joins WisdomTree’s broader tokenized product line. The firm manages 12 tokenized funds holding nearly $900 million. Most clients remain institutional, but the retail audience is growing.

Tokenization provides transparency, faster settlements, and lower costs. It also allows assets to interact with decentralized finance applications, creating new utility. Such benefits are still of interest to legacy institutions and blockchain-native companies.

Industry Pushes for Legal and Regulatory Clarity

The sector is still marred by the uncertainty of regulation despite the momentum. Analysts highlight challenges such as unclear smart contract enforcement and inconsistent global rules.

Still, early comparisons show similarities with the ETF market’s early development. Tokenized funds may follow a similar growth path, though adoption timelines are unclear. Many institutions are treating 2025 as a testbed for blockchain-based financial products.