WisdomTree Brings Private Credit On-Chain with the Launch of CRDT

The Launch

The launch centers on the WisdomTree Private Credit and Alternative Income Digital Fund, ticker CRDT. Available through the firm’s Prime and Connect platforms, it deploys on Ethereum and Stellar blockchains, with Avalanche support slated next. Subscriptions clear instantly, redemptions in two days. At its core, CRDT mirrors the Gapstow Private Credit and Alternative Income Index, blending 35 holdings from closed-end funds, business development companies, and real estate investment trusts.

These components deliver income from loans to non-bank borrowers, a sector that ballooned during low-rate years as banks pulled back from riskier lending.

WisdomTree built this on familiar ground. Back in 2021, the firm rolled out an exchange-traded fund on the same benchmark, drawing retail money into private credit when yields topped 8 percent. That ETF now holds steady as a diversification play, but CRDT flips the script by tokenizing shares. Holders gain blockchain perks like programmable ownership, where smart contracts handle dividends or collateral use in decentralized finance protocols.

Will Peck, WisdomTree’s head of digital assets, called it a bridge for crypto users to snag institutional-grade exposures without the usual hurdles.

Fund Mechanics: Yield Meets Digital Speed

Private credit thrives on direct loans to companies, often mid-sized firms skipped by big banks. Returns average 10 percent annually, outpacing bonds in a rate-hike era. CRDT captures this through equal weighting, avoiding concentration in any single borrower. Investors buy tokens representing fund units, redeemable for cash or swapped in secondary markets.

The $25 threshold shatters old barriers; traditional private funds demand six figures minimum, locking out most individuals.

This setup echoes broader shifts. When rates spiked in 2022, private credit inflows hit $200 billion yearly, per industry trackers. Banks, squeezed by regulations, ceded ground, letting non-banks like Apollo and Ares scoop up deals. WisdomTree’s move layers blockchain atop this, shortening settlement from weeks to hours. Jeremy Schwartz, the firm’s global chief investment officer, highlighted how the original ETF democratized entry four years ago. CRDT extends that, he said, by wrapping yields in a format suited for digital wallets.

Tokenization’s Rising Tide: From Pilots to Portfolios

Tokenized real-world assets crossed $50 billion this month, up from $24 billion in June, fueled by clearer rules and bank buy-in. Private credit claims the lion’s share, over half the total, as firms chase stable income on volatile chains. WisdomTree manages 12 such funds now, with $900 million in assets, mostly from institutions testing on-chain waters.

Look at BlackRock’s playbook. Its BUIDL money market fund, launched last year on Ethereum, swelled to $2.9 billion by summer, offering daily yields from Treasuries. Fidelity followed with a $202 million tokenized fund, rolling it out on the same chain for seamless DeFi integration. These successes stem from 2023 pilots, when Goldman Sachs and BNY Mellon tested money market tokenization for institutions, cutting custody costs by 30 percent. State Street joined in August, handling a $100 million cross-border trade via JPMorgan’s platform.

WisdomTree stands apart by targeting alternatives over safe havens. While BlackRock focuses on liquid cash equivalents, CRDT dives into illiquid debt, promising higher payouts but with credit risks tied to borrower defaults. Rates easing now could pressure yields, much like the 2019 dip when private funds returned just 7 percent. Yet blockchain adds resilience: transparent ledgers let investors track holdings in real time, unlike opaque traditional structures.

Peers and Pressures: Convergence or Clash?

Compare CRDT to VanEck’s on-chain Treasury offerings, which hit $500 million in flows last quarter by blending government debt with crypto rails. Both prioritize accessibility, but WisdomTree emphasizes income over preservation. Industry peers such as Apollo tokenized $100 million in credit earlier this year, partnering with Chainlink for oracle feeds that verify off-chain payments.

Fragmented regulations slow adoption; Europe’s MiCA framework aids compliance, but U.S. rules lag, leaving funds like CRDT navigating state-by-state filings. Liquidity tests true mettle: Secondary trading volumes for tokenized funds average $10 million daily, far below ETF peaks.

WisdomTree’s strategy now rests on execution. Platform data shows early adopters include hedge funds incorporating CRDT into yield strategies. Broader adoption will depend on whether blockchain demonstrably reduces costs without reintroducing security risks. Encouragingly, audit improvements helped cut hack incidents by 60 percent in 2025.

If tokenized volumes continue to expand, private credit could reshape fixed income by combining Wall Street rigor with Silicon Valley efficiency.