Asset manager WisdomTree launched a tokenized private credit fund (CRDT) to offer credit to private corporations, real estate investment trusts, and business development corporations. The fund is accessible to retail and institutional investors, expanding access to typically restricted asset classes. The tokenized private credit market is growing, with over $16.7 billion in value. Tokenization involves converting ownership or rights to an asset into a digital token on a blockchain, with various tokenized funds, including money market funds and private equity funds, gaining popularity. Investment firms like Goldman Sachs and BNY Mellon are offering access to tokenized money market funds for institutional investors, signaling a trend towards tokenized financial instruments. State Street became the first custodian for JPMorgan’s tokenized debt platform, facilitating a $100 million transaction in tokenized commercial debt. Chainlink, UBS, and RWA exchange DigiFT are testing tokenized fund settlement in Hong Kong, while BlackRock is reportedly exploring tokenizing ETFs to increase capital velocity and enable collateral use in DeFi applications.

Read more at Cointelegraph: WisdomTree Announces Tokenized Private Credit Fund