How $100B Asset Managers Are Making Tokenized Funds a Reality | Maredith Hannon of WisdomTree

Episode Summary

Executive Summary: Meredith Hannon describes WisdomTree’s rapid move into tokenized funds as a natural extension of its ETF business: delivering transparent, regulated exposures where clients already are, now on-chain. She argues tokenization is moving from theory to real adoption, driven by better user experience, yield, utility, and regulatory clarity, with crypto-native and institutional users leading the way.

Main Topics: Tokenized funds as the next evolution of ETFs (Priority: 5/5): Hannon frames tokenization as analogous to how ETFs transformed mutual funds: not changing the underlying assets, but dramatically improving access, transparency, liquidity, and ownership experience. Rapid growth and real adoption in 2025 (Priority: 5/5): WisdomTree says tokenized assets have moved beyond proof-of-concept, citing exponential growth and a sharp increase in AUM as investors actively use on-chain products. User experience and distribution on-chain (Priority: 4/5): The discussion centers on simplifying onboarding and trading through mobile apps, wallets, and chain-native access so blockchain becomes the background, not the burden. Yield, cash management, and alternative investment use cases (Priority: 5/5): Tokenized funds are positioned as tools for earning yield on idle cash, managing treasury operations, and accessing private credit or equities without leaving crypto-native infrastructure. Regulation, structure, and responsible DeFi (Priority: 5/5): WisdomTree emphasizes 40 Act structures, SEC regulation, bankruptcy remoteness, and transparency as differentiators versus less-regulated crypto yield products. Liquidity, transfers, and the future of secondary markets (Priority: 4/5): The interview explores how tokenization may push funds toward faster settlement, peer-to-peer transferability, and eventually true secondary markets and 24/7 liquidity. Identity, KYC, and interoperability (Priority: 4/5): Hannon discusses a future where verified identity can be portable across institutions, reducing repeated KYC while preserving compliance and enabling broader product access.

Key Arguments: Tokenization is following an ETF-like adoption curve, but faster because the user base is already on-chain and the ecosystem is built for digital ownership. WisdomTree entered tokenization because it matches its mission: giving clients transparent exposures on the platforms they already use. Regulated 40 Act structures matter because investors want bankruptcy remoteness, holdings transparency, and familiar protections even when assets live on-chain. The strongest near-term demand is for yield-bearing products, especially money market and liquid private credit, from crypto-native holders of stablecoins or idle cash. Long-term value is not just yield but utility: using tokenized funds as collateral, payment instruments, or building blocks in DeFi. Crypto-native users often adopt first because they already understand wallets and want traditional assets without exiting the chain ecosystem. Tokenized products can reduce frictions in treasury management, cross-border value transfer, and diversified portfolio construction. The future likely involves more portability of identity and account access, so users do not need to KYC repeatedly across every platform.

Data Points: Tokenized fund AUM growth: 5x incremental growth - Hannon says WisdomTree’s tokenized assets grew almost five times from last year to this year. WisdomTree tokenized AUM: $750 million - Estimated current AUM, predominantly in the money market fund. Number of tokenized funds: 15 funds - WisdomTree has a suite of tokenized funds available across multiple blockchains. Money market fund settlement: less than 10 seconds - Retail app transactions can settle in under 10 seconds in some cases. Liquid private credit yield: over 10% - Hannon cites a liquid private credit product yielding over 10%. Alternative yield range: 3.5%, 5%, 11%, 12% - Examples of yields discussed for money market, cash, and private credit use cases. Retail app minimums: $1 minimum; $25 highest minimum - WisdomTree Prime on-ramp for U.S. retail investors. Subscription/redemption timing for private credit fund: T+0 subscriptions; T+2 redemptions - Tokenized private credit is positioned as liquid relative to traditional private credit structures. Cash management transfer speed: less than 30 seconds - Cross-border payment/value transfer use case discussed as a future utility of blockchain. Coinbase users: over 100 million - Referenced as evidence of broad retail demand in crypto-native channels.

Pivotal Quotes: "“What 2025 proved out is: yes, it’s here, yes, it’s here to stay.”" — Meredith Hannon: Hannon on the maturation of tokenization from theory to durable market reality. "“If you don’t understand where the yield is coming from, you may be the yield.”" — Meredith Hannon: Her cautionary point about opaque crypto yield products and why regulated structures matter. "“It’s not necessarily about the technology, but about the end investor experience.”" — Meredith Hannon: Her view that tokenization will be judged by usability and outcomes, not blockchain jargon.

Implications: Tokenized funds are likely to grow fastest where they solve real frictions: cash yield, liquidity, treasury, and access. Expect more regulated on-chain products, more portable identity, and pressure on traditional fund structures to become faster and more flexible.