Oct 30, 2026 earnings call — Record AUM and onchain tokenization
Record AUM of $171 billion at quarter end and $4.6 billion net inflows drove revenues of $179.4 million.
Revenue $0.2B (est $0.2B) · EPS $0.32 (est $0.30)
Key quotes
"We have invested in our tokenization platform, onchain transfer agent, broker-dealer, and regulated trust company."
"Our assets under management reached a record $171 billion at quarter end, marking our seventh consecutive quarter of record AUM."
"In 2026, we've tracked more than 1,500 hours saved per month through AI, the equivalent of at least 10 full-time employees."
Analyst Q&A 6
Private assets in ETFs; tokenization profit
Q (Wilma Burdis · Raymond James): Analyst asked how WisdomTree can bring privately held companies into an ETF format, and also asked about expense moderation and the profitability outlook for the tokenization business.
A: Management said they are not sharing fund mechanics yet but expect this to be a 2027 event and plan strategies that include limited allocations to private assets, such as farmland and potentially private company shares. Expenses moderated due to seasonality, controlled spend, and leverage in compensation ratio. They said the tokenization business is currently an investment phase, they do not disclose separate financials, and they remain optimistic about building it cost-effectively.
"This business is very much an investment in investment mode today." — Will Peck
Where WisdomTree keeps work in-house
Q (George Sutton · Craig-Hallum): Analyst asked which capabilities WisdomTree insources versus outsources and how that gives an edge, plus questions about the CLARITY Act impact on the tokenized money market fund and know-your-agent workflows.
A: Management said they keep high-value capabilities in-house, citing examples like owning their transfer agent, a regulated trust company for stablecoins, and a FINRA broker-dealer to support onchain efforts. They said the CLARITY Act not passing had no negative impact and the GENIUS Act environment and wallet infrastructure expansions make their Rule 2a-7 money market fund very compelling, with low minimums and secondary market functionality. On know-your-agent, they have no specific updates yet but offer a sandbox and APIs for partners to build agentic workflows.
"We've got a very high bar in terms of where we insource versus where we outsource and try to focus on real value-added areas of insourcing." — Will Peck
How onchain growth makes money
Q (Michael Cyprys · Morgan Stanley): Analyst asked how onchain AUM growth will turn into meaningful revenue and earnings, what the top monetization paths and catalysts are, how partnerships expand distribution, and whether recent hacks affect adoption.
A: Management said primary monetization paths include asset-management expense ratios and additional broker-dealer revenue streams, plus net interest income from increased stablecoin usage. They explained partnerships like BitGo let customers access the money market fund inside partner platforms, which should help AUM inflows as those integrations grow. On the Binance hack, they said freezing by major stablecoin issuers showed issuer controls can limit impact, so regulated stablecoins and tokenized real-world assets may not be negatively affected in the same way as true bearer crypto on exchanges.
"I'll just add, Mike, with our partnership involvement in the bank stablecoin efforts, net interest income from greater stablecoin usage as our products are moving around the world more fulsomely." — Jonathan Steinberg
Tokenization as a service; sourcing privates
Q (John Coffey · Oppenheimer): Analyst asked whether WisdomTree plans to offer tokenization-as-a-service to wrap other people’s assets, and how they expect to source private assets for combined public-private funds (owned assets versus third-party deals).
A: Management said they have contemplated tokenization-as-a-service, are in active conversations, and see a multi-issuer future where their service could play an important role. They view such offerings as constructive for the ecosystem and a way to demonstrate platform value. On sourcing private assets, they said it will be a combination of 100% owned assets like Ceres and partnership arrangements in the venture/private side.
"We think our tokenization as a service offering could play a really important role in that." — Will Peck
Platform fees and models business growth
Q (Mike Grondahl · Northland): Analyst asked about the potential impact of wealth platforms charging ETF platform fees on WisdomTree, and asked what is driving the accelerating growth in the portfolio models and solutions business.
A: Management said third-party distribution or platform fees are part of their business and have been roughly 3% of total revenue recently, and they expect no material change in that ratio next year. They emphasized they only pay platform fees when they drive value and that their efficient model lets them afford distribution. For the models business, they said flows are strong, assets are stickier with lower turnover, and custom models plus the Atlantic House acquisition are key growth drivers.
"these third-party distribution fees, they're roughly 3% of our total revenue based on recent experience." — Bryan Edmiston (CFO)
SEC innovation exemption and onchain ETFs
Q (Aditya · Goldman Sachs): Analyst asked whether the SEC innovation exemption changes the plan to bring U.S. ETFs onchain, and whether WisdomTree's digital funds are direct onchain shares or wrapper products.
A: Management said their digital funds issue shares directly onchain as a direct-registration tokenization model, not a wrapper, so the shareholder in a wallet is on the fund's register. They believe their model is different from wrapper/SPV approaches and is fully supported within the innovation exemption. They also said the platform was built anticipating this direction and is positioned well for future developments under the exemption.
"If you look at our filing we made on the tokenized ETF, you look at how our digital funds actually work, as you noted them, it is actually the funds that are issuing the shares directly onchain." — Will Peck