ウィズダムツリー (WT) 2026年第3四半期決算説明会：運用資産残高（AUM）は過去最高の1,710億ドル、純流入額は46億ドル

主要ポイント

• 四半期末の運用資産残高は6月30日時点から5%増加し、過去最高の1,710億ドルに達し、WisdomTreeとして7四半期連続で最高AUMを更新しました。
• 当四半期の純流入額は計46億ドルとなり、内訳は米国で24億ドル、欧州で17億ドル、オンチェーン製品で5億ドルでした。年初来の純流入額は136億ドルに達し、約13%の年率換算オーガニック成長に相当します。
• 収益は前四半期比1%増、前年同期比43%増の1億7,940万ドルに増加しました。調整後営業利益率は43.1%に達し、調整後当期純利益は4,950万ドル（1株あたり0.32ドル）となりました。
• 経営陣は通期の裁量支出ガイダンスの上限を200万ドル引き下げ、新たな範囲を8,300万ドル〜8,700万ドルに設定しました。受取利息の見通しは100万ドル引き上げられて900万ドルとなりました。
• WisdomTree OnChainは、WTGXX、新たな販売パートナーシップ、および独自インフラを通じて拡大を続けました。同事業は依然として投資フェーズにあり、経営陣はファンドの信託報酬率、ブローカー・ディーラー・サービス、および将来的なステーブルコイン関連の受取利息純額を今後の収益化チャネルとして特定しています。
• 経営陣は、Cirrusや外部パートナーシップを通じて調達した資産を活用する可能性を含め、限定的なプライベート・マーケット資産を含むETF戦略を2027年に導入する見込みです。

主要財務データ

事業および営業業績

資金流入は国際株式、債券、コモディティ、米国株式など広範に及びました。WisdomTreeはまた、米国、欧州、およびオンチェーン事業のすべてで過去最高のAUMを記録しました。

ポートフォリオ・ソリューション事業のモデルアドバイザリー資産（AUA）は100億ドルに接近しました。経営陣は、米国でのカスタムモデルが支持を広げており、これらの資産は比較的解約率が低く回転率も低いと説明しました。

WisdomTreeはAtlantic Houseの機能を活用した初の欧州向け2製品をローンチし、今後18〜24ヶ月で15〜20製品を投入する計画です。Cirrusは6月中旬に第2号ファンドをローンチし、協議の中盤から終盤段階にある100超の投資家から1億ドルを超える潜在需要のパイプラインを発表しました。なお、これらの数字は確定した出資資金ではなくパイプラインを表しています。

WisdomTree OnChainには、個人投資家向けアプリ「WisdomTree Prime」、機関投資家向けAPI・ポータル「WisdomTree Connect」、および開発中のセカンダリーマーケット機能が含まれます。同社は自社のトークン化プラットフォーム、オンチェーン株主名簿管理代行機関（トランスファーエージェント）、ブローカー・ディーラー、および規制対象の信託会社を自社で構築しています。

WisdomTreeのトークン化マネー・マーケット・ファンドであるWTGXXは、継続的な利息発生と24時間365日の取引に対応しました。経営陣は、主なユースケースとしてキャッシュマネジメント、ステーブルコイン準備金、担保の移動性を挙げています。最近発表された販売提携先には、BitGo、MoonPay、Stablecy、Hashkey、MarketNode、Synthesisが含まれます。

同社は、着実なAI施策により2026年に月間1,500時間以上の従業員時間が削減されたと発表しました。これは少なくともフルタイム社員10人分に相当します。経営陣はこれらのツールを、人員削減プログラムではなく生産性向上策と位置付けています。

経営陣の業績見通し（ガイダンス）

• 通期裁量支出：8,300万ドル〜8,700万ドル（従来レンジの上限を200万ドル引き下げ）。
• サードパーティ販売費用：2,100万ドル〜2,300万ドル（年初来で1,650万ドル計上後、前回の見通しから縮小）。
• 受取利息：900万ドル（利息を生み出す想定資産額に基づき100万ドル引き上げ）。
• 第4四半期の希薄化後株式数：1億5,400万株〜1億6,000万株（株価平均21ドル〜24ドルを前提、転換社債に関連する増加株式を含む）。
• 経営陣は、今後の業績予想（ガイダンス）のその他の要素はすべて前四半期から変更はないと述べました。
• 経営陣は、プライベート・マーケット資産の配分が2027年に一部のETF構造に導入されると見込んでいますが、具体的なファンドの仕組みや設定日については明らかにしていません。

リスクと注視すべきポイント

前四半期比での収益拡大は、欧州ETPからの取引手数料減少や成功報酬の低下により一部抑制されました。

オンチェーン事業は依然として投資フェーズにあり、WisdomTreeはその財務実績を個別に開示していません。また、経営陣は個別の販売提携やトークン化サービス提携がいつ完了するかは予測できないと説明しました。

第4四半期の実際の希薄化後株式数は、期間中のWisdomTreeの平均株価に応じて見通し（ガイダンス）範囲を外れる可能性があります。

クラリティ法案は上院で停滞したものの、経営陣は米国の広範な規制環境を建設的であると評価しました。また、Binanceのハッキングを受けたセキュリティリスクについても質疑応答で取り上げられました。経営陣は、発行体の管理機能や譲渡制限により、WTGXXを含む規制対象のステーブルコインやトークン化された現実資産（RWA）における同様のリスクは低減されていると主張しました。

アナリスト質疑応答の要点

経営陣は、オンチェーン・プラットフォームにおける将来的な3つの収益源として、トークン化ファンドからの資産運用報酬、ブローカー・ディーラーを通じた提供サービス、およびステーブルコインの広範な利用に伴う潜在的な受取利息純額を挙げました。WisdomTreeはまた、他の発行体へのトークン化インフラ提供について積極的な議論を行っています。

販売体制について、経営陣はBitGo Mintなどの連携により、顧客が日常的に使用しているプラットフォーム内で直接WTGXXにアクセスできるようになると述べました。その目的は摩擦を減らし、顧客が別のWisdomTreeインターフェースに資産を移動させることなく、トークン化マネー・マーケットへの投資機会を提供することです。

プライベート・マーケットETFに関し、経営陣は調達先についてCirrusのような完全子会社化された機能と、未公開株へのアクセスを含む外部パートナーシップを組み合わせることができると述べました。計画されている戦略は主に流動的な運用を維持しつつ、プライベート資産への限定的な配分を含む形となります。

経営陣は、サードパーティ販売費用は最近で収益の約3%を占めていると述べ、2027年にかけてその比率に重要な変化は見込まないと示唆しました。正式な2027年のガイダンスは来四半期に発表される見込みです。

決算説明会トランスクリプト全文

決算説明会の完全なトランスクリプト

経営陣による説明

Operator

Thank you. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jessica Zaloum, Head of Corporate Communications. Thank you. You may begin. Thank you. Good morning. Before we begin, I would like to reference our legal disclaimer available in today's presentation.

This presentation may contain forward-looking statements within the meaning of the Private Securities Reform Act of 1998.

Jessica Zaloom

A number of factors could cause actual results to differ materially from the results discussed in forward-looking statements, including, but not limited to, the risks set forth in this presentation in the Risk Factor section of WisdomTree's Annual Report on Form 10-K for the year ended December 31, 2025, and in subsequent reports filed with or furnished to the Securities and Exchange Commission. WisdomTree assumes no duty and does not undertake to update any forward-looking statements. Now, it is my pleasure to turn the call over to WisdomTree CFO, Bryan Edmiston.

Bryan Edmiston

Thank you, Jessica, and good morning, everyone. I will begin with the review of our 3rd quarter results, followed by updates to our forward-looking guidance, before turning the call over to Jarrett, Will, and Jono for additional business updates. Our assets under management reached a record $171 billion at quarter end, marking our seventh consecutive quarter of record AUM. Assets increased 5% from June 30th, driven by strong net inflows and favorable market conditions. All-time highs were achieved across our U.S., European, and on-chain businesses, reflecting continued growth across our global platform. During the quarter, we generated $4.6 billion of net inflows, with positive contributions across the firm, including $2.4 billion in the U.S., $1.7 billion in Europe, and $500 million from on-chain. Year-to-date net inflows totaled $13.6 billion, representing an annualized organic growth rate of approximately 13%.

Inflows remain broad-based across strategies and geographies with meaningful contributions from international equities, fixed income, commodities, and U.S. equities. The operating leverage inherent in our business model continues to translate into margin expansion, both sequentially and year-over-year as record AUM and continued strong organic growth demonstrate the increasing earnings power of our business. We also remained active on capital management, retiring the remaining $18 million principal amount of our 2029 convertible notes using cash while repurchasing approximately $11 million of common stock during the quarter, representing roughly 500,000 shares. These actions further simplify our capital structure while also returning capital to shareholders. Overall, our strong organic growth and record AUM continue to drive greater scale and higher earnings, strengthening our ability to create long-term value for shareholders. Next slide. Revenues were $179.4 million during the quarter, an increase of 1% from the 2nd quarter, driven by higher AUM, partly offset by lower transaction fees from our European ETPs and lower performance fees. Revenues increased 43% from the prior year quarter and 49% year-to-date, driven by higher AUM, elevated trading activity relative to the prior periods, and contributions from the Cirrus and Atlantic House acquisitions.

Adjusted operating margins were 43.1% for the quarter and 41.8% year-to-date, representing 750 basis points of expansion from the comparable prior year period. This improvement underscores the operating leverage in our business model, generated by strong revenue growth, including contributions from our recent acquisitions. Adjusted net income for the quarter was $49.5 million, or $0.32 per share. Next slide. Now a few comments on our forward-looking guidance. Discretionary spending totaled $62.2 million year-to-date. We are updating our full-year guidance to range from $83 million to $87 million, reflecting a modest $2 million reduction to the high end of our previous range. We are also narrowing our 3rd party distribution guidance to $21 million to $23 million, having recognized $16.5 million year-to-date. Our interest income guidance is increased by $1 million to $9 million, reflecting our current expectations for interest earning assets.

Finally, we expect 4th quarter diluted shares to range from 154 million to 160 million shares, including incremental shares associated with our convertible notes, at an average stock price of $21 to $24 per share. Actual diluted shares may fall outside this range, depending on our average share price during the quarter. And as a reminder, our earnings presentation includes an illustration to help quantify the potential dilution associated with our convertible notes going forward. All other elements of our forward-looking guidance remain unchanged from last quarter. This concludes my remarks. I will now turn the call over to Jarrett.

Unknown Speaker

All right, thanks, Bryan, and good morning, everyone. As Bryan highlighted, this was another strong quarter for WisdomTree with $4.6 billion of net inflows and continued broad-based strength across our global product suite. And what continues to stand out isn't just the magnitude of those flows, but the breadth and depth of where they are coming from and how consistently we are generating growth, even as the funds driving it change with the market environment. Over the last several years, an average of nine of our top 15 flow generating funds each quarter weren't in the top 15 the quarter before. That's the broad-based growth Bryan describes in action, where a wide range of products are contributing at different times, giving us multiple ways to win business as investors' needs change. Our portfolio solutions business also continues to grow well with model AUA now approaching $10 billion. We are adding new advisors while deepening relationships with existing users, driving stickier assets and more sustainable organic flows.

We are also beginning to see the benefits of our Atlantic House acquisition. We have launched our first two products in Europe, leveraging the team's capabilities, with plans to launch 15 to 20 products over the next 18 to 24 months. We see real opportunity to drive strong organic growth in liquid alternatives across both Europe and the U.S., combining differentiated investment expertise with our global distribution platform. With Cirrus, we launched Fund 2 in mid-June and already have a strong pipeline with more than $100 million of potential demand from over 100 investors in the mid to late stages. We remain very bullish on the combination of Cirrus's differentiated farmland strategy and WisdomTree's capabilities to drive attractive returns and strong organic growth. And Jono will talk more about how Atlantic House and Cirrus fit into our broader evolution across public markets, private markets, and digital assets. Turning to efficiency, we are continuing to focus on scaling the business while finding ways to make our existing team even more productive.

AI is an important part of that effort. We have been embedding AI into workflows across the firm for several years now, not as a headcount reduction initiative, but as a way to free up our employees to focus on higher impact activities. And we are seeing tangible results. In 2026, we have tracked more than 1,500 hours saved per month through AI, the equivalent of at least 10 full-time employees, and that's only from the initiatives we have been able to fully measure, so the actual impact is likely meaningfully higher. Jono will also touch on how we are using AI in the investment process itself. That focus on growth and efficiency is what's driving the margin expansion Bryan walked through, with 750 basis points of improvement year to date. And importantly, we are achieving that while continuing to invest in growth, maintaining expense discipline, and leveraging incremental margins north of 50%. So you have all heard me say this before, but we have an effective playbook that's been working for several years now, which is drive high-quality organic growth, find ways to become more efficient as we scale, and translate that into even greater earnings power.

And we are continuing to execute on all three fronts. That playbook is also extending into new areas of growth and tokenization is a prime example. Onchain contributed $500 million of net inflows this quarter, and with so much going on in the space, we have invited Will Peck, our head of WisdomTree Onchain, to join the call. He will share more about the progress we are making from growing demand for our tokenized product to the partnerships expanding our distribution. And with that, Will, over to you.

William Peck

Thanks, Jarrett, and good morning, everyone. I am excited to spend a few minutes talking about where we stand with our on-chain business and where we are focused going forward. Let me start with something we announced recently, bringing our digital asset initiatives together under one name, WisdomTree OnChain. Historically with WisdomTree Prime, WisdomTree Connect, and the different pieces of our infrastructure, it hasn't always been easy to understand how everything fits together. But these have always been part of building one integrated platform. And WisdomTree OnChain better reflects what that business has become. This includes our retail app, WisdomTree Prime, our institutional and 3rd party distribution API and portal through WisdomTree Connect, and on-chain markets, which we are developing to expand secondary market trading.

And importantly, we have built the underlying infrastructure ourselves. We have invested in our tokenization platform, on-chain transfer agent, broker-dealer, and regulated trust company. We are not just an asset manager putting funds on a blockchain. We have built an integrated financial services platform that we can use for our own products and potentially offers to others as a service. And we are already seeing the benefits of that investment. A great example is WTGXX, our tokenized money market fund. While we have had some recent seasonal inflows and outflows, the trend line remains consistent.

We are seeing continued growth across use cases. We have introduced the ability to trade the fund around the clock 7 days a week, along with continuous interest accrual. This functionality is leading to greater demand. Stablecoin reserves, cash management, and increasingly collateral mobility remain the major use cases we see for WTGXX and tokenized treasury funds. I like to think about stablecoins as money in motion and tokenized money market funds as money at rest. Stablecoins are incredibly useful for moving value around the blockchain ecosystem, but that money isn't being used, investors should be able to earn a yield without having to move back into the traditional financial system or take risks in DeFi. And obviously, the benefits of this only increase when AI agents start handling a greater number of financial transactions and can always ensure idle cash is generating return for investors and businesses. That's exactly the kind of problem we are solving with WTGXX. We are also looking to extend these capabilities beyond money market funds.

We have a novel tokenized ETF proposal in front of the SEC today, which could be another important step in bringing the benefits of on-chain trading to a broader range of investment products. So we built the infrastructure, we have products demonstrating real demand, and now a major focus is distribution. How do we get these products and services in front of more customers? Increasingly, the answer is through partnerships. We have recently announced relationships with firms globally, including BitGo, MoonPay, Stablecy, Hashkey, MarketNode, and Synthesis. They serve different customers and markets, but our objective is the same, making WisdomTree's products and infrastructure available where people are already doing business. He has also joined a consortium of 21 global financial institutions developing a regulated U.S. dollar stablecoin. These are some of the largest banks in the world with millions of existing customers, and I think it's another indication of how quickly traditional finance is moving into this space. The pipeline of conversations we are having, both around distributing our products and potentially providing tokenization services to other firms, is extremely robust.

I cannot predict when individual partnerships will come together, but I am encouraged by what we are seeing. On the legislative and regulatory front, the environment remains constructive. The Genius Act's passage last year was a milestone event. In U.S., while the Clarity Act stalled in the Senate, adoption of stablecoins and tokenized securities has continued. Regulatory progress has also continued, including the SEC's proposed changes to Reg NMS, its innovation exemption for trading of tokenized securities, and the OCC's final rule implementing the Genius Act. So stepping back, our investments in this platform have us extremely well positioned for the secular bull market. We have the infrastructure, differentiated products, an expanding distribution network, and an increasingly supportive regulatory environment. Still a lot of work ahead, but I think we are very well positioned as more financial services moves on-chain.

Thanks, everyone. I will turn it back to Jono.

Jonathan Steinberg

Thank you, Will, and good morning, everyone. As you have heard from Bryan, Jarrett, and Will, WisdomTree continues to execute exceptionally well. It is becoming more apparent to more investors that WisdomTree is not simply an ETF company. We are becoming a truly modern global asset manager, a next generation global asset manager. After 20 plus years of continued strategic reinvestment, we are intentionally positioned at the intersection of three powerful transformations in financial services. Democratization of investing globally, the convergence of public and private markets, and the tokenization of financial markets on chain. The most exciting opportunity, the real transformation comes from not merely participating in these three markets independently. It is in integrating them into a cohesive platform and investment ecosystem, which is exactly what WisdomTree is doing.

WisdomTree has always taken a differentiated approach to our operating model. We only insource where it is strategic and we have a genuine edge, where our expertise can make a real difference. We retain the intellectual property, specialized investment capabilities, and global distribution network that distinguishes us. And we have brought our technology development in-house while outsourcing more commoditized products and activities. The result is an extraordinarily efficient and scalable business. Today, we manage approximately $170 billion in assets with just 440 employees. As we continue to grow, that operating leverage translates into expanding margins and faster earnings per share growth.

But the operating model is only part of our story, starting with public markets, which remain the foundation of our business. 20 years ago, we launched our first 20 ETFs, and we introduced the concept of modern alpha, challenging traditional indexing. As Jarrett highlighted, the breadth of our product lineup and years of consistent organic growth demonstrate just how successful this approach has been. Today, we are making modern alpha further than we could have imagined back then. We are using AI to uncover new sources of alpha. In fact, one of our AI-driven long-short strategies, which uses leverage, it's a true hedge fund in the ETF wrapper. It has outperformed the market by more than 900 basis points so far this year. And with Atlantic House, we have significantly expanded our capabilities in sophisticated liquid alternatives and defined outcome solutions.

These are differentiated, higher revenue-yielding investment capabilities that we can now bring to a much broader global audience. Turning to privates, our acquisition of Cirrus gave WisdomTree a leading position in U.S. farmland, a differentiated asset class with attractive economics. But we are looking beyond farmland. Companies are staying private longer and increasingly significant value creation is happening before they ever reach the public markets. We believe ETF investors should have access to some of that opportunity. To me, that's another expression of modern alpha. In 2027, we expect to bring private market allocations into the ETF wrapper, providing investors with greater diversification and potentially new sources of outperformance. I don't want to get ahead of ourselves here, but we are working on some very innovative approaches, and you will hear more about that in coming quarters.

Finally, turning to tokenization and on-chain finance. As Will just outlined, we have spent years building a fully vertically integrated tokenization platform. We have the regulated infrastructure, technology, and the investment products to compete at the cutting edge of this market. And while we are still in the early stages, I believe very few firms have assembled the capabilities that we have. And importantly, this platform is about more than just our own funds. We have built the infrastructure and services that other financial institutions can leverage as they embrace tokenization. I believe tokenization will fundamentally change how financial assets are issued, distributed, and traded.

We have invested early, we have built the foundation, and we are exceptionally well positioned to capitalize as adoption accelerates. Stepping back, public markets, private markets, and tokenization. Three distinct but increasingly interconnected capabilities that I believe will define the future of asset management. Combine that breadth of capabilities with our extraordinarily efficient business model. And that's what we are building at WisdomTree, a truly modern global asset manager. Thank you. Let's open the call to questions.

Operator

[Operator Instructions] The first question is from Wilma Burdis from Raymond James. Please go ahead.

Unknown Speaker

Hey, good morning. You just mentioned the ability to bring privately held companies to an ETF format. I realize that you can share. It seems like that would be a huge market. Thanks.

Jonathan Steinberg

Thanks, Wilma. So first, you know, our public, the target, we are not sharing right now specific fund mechanics or the launch dates beyond that we expect this to be a 2027 event. But what we are really trying to do is build strategies that are predominantly liquid that do incorporate limited allocation to private assets, really always towards a to the benefit of the investor. So delivering after fee returns that are enhanced by the addition of additional assets. And so we really, we believe, obviously we made the acquisition of farmland. That would be an obvious area allocation within the appropriate selected funds, but we also think we could expand that to incorporate shares of private companies as well. But I don't think I can say more about that at this time, but we are excited about the opportunity. Sounds like an interesting one. Sorry, please continue, Wilma.

Unknown Speaker

Oh, no, I was just saying, sounds like an interesting one. I didn't know if there was anything else you guys wanted to add there. But, yes. Expense growth seemed to moderate this quarter as well. Maybe you could talk a little bit about that.

Bryan Edmiston

Yes, Wilma, thanks for the question. Yes, I got this one. Expenses were down and moderated a bit. Some of that seasonality over the summer months, some of that's just continuing to control our spend, and some of that is just realizing further leverage in our comp ratio as well.

Unknown Speaker

Okay, thank you. And then could you talk a little bit about the profitability of the tokenization business and how that's going to progress in the near future? Thanks.

Jonathan Steinberg

Will, do you want to start?

William Peck

Yeah, happy to. Thanks for the question. So this business is very much in investment mode today, so we don't disclose kind of separate financials associated with it. Bryan can maybe provide some more color there. Um, we could. You can see in the AUM growth, you can see in the pipeline that we have, remain extremely optimistic and bullish in trying to build this in a very disciplined way to take advantage of the infrastructure that we have here at WisdomTree, the benefits that we have with some of these global vendor relationships that we have that allow us to do this in a very disciplined way, a very cost-effective way than if you were just building sort of trying to build the on-chain leader and registered funds from scratch. So we feel, you know, very good about how we positioned it from an investment side and expense side. And you know, we will continue to keep you posted as we have more details there that we can share.

Jonathan Steinberg

Hey, Will, do you mind just also maybe talking a little bit about the use cases and maybe the addressable market? I mean, it does tie into future profitability. Okay.

William Peck

Yes, absolutely. So, you know, we talked about, I spoke a bit about this in the prepared remarks. We see a really large addressable market here for on-chain registered funds, specifically with the money market fund, let's say. The use cases that we are seeing today being cash management, stablecoin reserves, collateral mobility. These are huge addressable markets in and of themselves, right? So one of the ways that I like to think about – I mean, we are really talking about M2 at a certain level, right? So that's $83 trillion today. I don't mean to like overstate that, but M2 is a big number. People really want the risk-free rate today, right? Especially when I think SOFR is at like 3.94% today. So there is really a real cost of capital in terms of not getting or not trying to get to the risk-free rate with your cash.

And so, um, we see that being a trend across the board. Financial services. It's only going to take hold even more, particularly as people incorporate agents, agentic finance into their workflows. And that's going to really put a lot of pressure on friction-based businesses or this idea that you are comfortable not getting the risk-free rate on your cash. So we do think it's going to be a huge addressable market. There's currently about $8 trillion in money market funds, $16 trillion in ETFs. I like to think about like how big could these numbers get? Especially if we see accelerated GDP growth from here, like how big could those numbers get? You know, the world really wants access to U.S. dollar, U.S. capital markets. It wants that access within the U.S. regulatory perimeter, and that's something that we will think on-chain formatting of these types of structures, these types of exposures, can really help solve. So we are talking about a very, very big addressable market here over time.

Jonathan Steinberg

You know, the only other thing, again, about the cost, Wilma, what I would just say is, you know, Bryan has given guidance that we are spending sort of the mid-20s from an operating loss standpoint. But I do believe that the value, you know, for those of the analysts or the investors that value us on a multiple of the PE, you are really putting a negative value on the investments that we have made in this on-chain industry, ecosystem, there are peers, a public peer with more than $1 billion of value. The delta here between what's in our stock today and what should be realized, I think is quite immense. And obviously we as management will be very diligent in trying to, you know, bring that value more closely to investors' attention, to make it more obvious to more investors. So, we are excited about it.

Operator

Okay, thank you. Thank you. The next question is from George Sutton from Craig Hallam. Please go ahead.

質疑応答

George Sutton

Thank you. Jono, just a little bit more to that point of the misvaluation of your digital asset build out. You had started to discuss in the prepared comments that you insource where you have an edge. I am just curious if you could give us a sense of some of those edges that you have built from an insource perspective. Sure.

Jonathan Steinberg

Will, do you – I could, but maybe it's better if Will starts the efficiency that comes from this fully integrated platform, Will.

William Peck

Okay. Yes, absolutely. I mean, I think WisdomTree, you know, historically has been very smart about where it insources and where it outsources. You know, I think that allows this business to have, you know, $170 billion thereabouts in AUM with about, you know, just north of 400 employees, right? So I think that's something that we are proud of in terms of how efficient we can be. We have 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. So in the on-chain business, right, there was those really a lot of white space when we started on this, right? Um, you know, it might not be so common for an asset manager in 2026 to own its own transfer agent, but that was a real area of innovation that we saw where there was real doing things better, really added value for your customers. Another example could be the willingness to have a money services business and regulated trust company. That's something that WisdomTree saw as being important in this, the ability to deal in stablecoins. Um, and so bringing that or having that in-house has really allowed us to win certain business that we think we otherwise would not have been able to win. And then the last piece that I would kind of highlight is that we have over the past few years built out a broker-dealer.

You know, FINRA member broker-dealer, WisdomTree Securities, which supports toward, uh, various things in WisdomTree's business, one of which is the tokenization on-chain efforts. And that broker-dealer, we have previewed on-chain markets a bit, the importance of having secondary market liquidity, our tokenized ETF model, that broker-dealer is going to prove to be very important, we think, going forward. So these are just examples where I think by being willing to think about how this technology actually adds value and what WisdomTree can do in order to achieve that. We have been willing to, you know, make those investments and, uh, you know, have these entities, these regulated entities and related infrastructure that allows us to really maximize the opportunity. So, um, we have, feel really good about those decisions to date where we are today.

Jonathan Steinberg

And George, let me just add, so the question really was about like insourcing the technology development. It does allow us to be an incredibly responsive partner, so all the partnerships that Will has recently, that we mentioned or that are coming in the future, move quickly, be responsive, as opposed to somebody who is outsourcing a lot of this, I think shows up in these partnerships and in just a smoother user experience from beginning to end for the end customer. Thanks, George.

George Sutton

Perfect. And um, post the Clarity Act not moving forward, I actually saw you as an enormous beneficiary of that in that stablecoins cannot offer interest. And when I look at your tokenized money market fund, it seems like a very unusually attractive option for folks, and I am just curious, sort of the impact since the Clarity Act. And you have also mentioned the agentic movement. So that obviously agents will try to find the best options independently. And then we were very pleased to see you offered now as part of the BitGo platform. So just can you give us a sense of how big can this tokenized money market fund alone be? Sure.

William Peck

Oh, I mean, I think you, yes, happy to. I think you spelled that a lot of the reasons there. I mean, yes, we saw no impact really, like no negative impact on the Clarity Act failing to pass. It was really, for us, we saw like a pre-Genius Act world and a post-Genius Act world. And what the Genius Act kind of gave the kind, for lack of a better term, blessing to U.S. regulated institutions to start doing more business with stablecoins and wallets. And so you have seen whether it's the consortium that we are a part of, some of the work that Open Standards is doing or Circle, others, really a real build out in terms of stablecoins and more importantly for us, wallet infrastructure, things that like MoonPay and BitGo provide, right? And so as this wallet infrastructure, the industry more broadly, that just opens up the real addressable market for our products and use cases. Like I said earlier, you know, people want the risk-free rate, especially when it's nearing 4%, right? And when you are on-chain and payment stablecoins, it is not so easy to get that.

You are reliant on some of these tenuous rewards programs, or taking risk in DeFi where you don't actually, you think you are getting the risk-free rate, but you don't know which kind of risks you are taking, right? So that does open up a huge opportunity in money market funds. And we think we have got, you know, certainly by doing this as a registered fund in the '40 Act, a 2a-7 government money market fund, we have done a lot of the hard work to make this as available to the most amount of people as possible with minimums as low as $1, right? Then we added the secondary market functionality with the exempted relief we got. And we think it's a very compelling value prop. And you are starting to see that with some of these integrations that we are doing in partnerships where putting this fund into the workflows of individuals and businesses is just going to make it easier for them to access. So they don't need to separately come to WisdomTree, although we can continue to make that process extremely smooth for people. Um, so, it could be a huge fund, right? Like we are talking about a very, very large addressable market. Money market funds in general, especially, um, you know, as the generic finance kind of continues to take hold, could get to be very, very big in the coming years. So, uh.

George Sutton

We are very bullish on it. Finally, if I could, Will, how are you working with a know your agent technology? Is that would that be an insource or outsource solution for you and has that been deployed? Yes.

William Peck

That's a good question. No, we don't have any specific kind of updates there. I think there have been a couple of interesting white papers that have been put out about like how you do KYC, KYB, CIP in a... when people are doing more business with agents. I mean, the one thing that I would like to think about point to today is like, we try to create a very good surface area by which people can code to our products, right? That they can access them programmatically in the way that works best for them. So I have seen some very cool examples of, of firms in our sandbox building agentic workflows using the sandbox. And I think that's just representative of how this could come. So we can kind of in the future, maybe have more updates on specific, know your agent style workflows. And I think more to come there, but in terms of creating a surface area by which people can access these products, or approximate the risk-free rate, we think we are building a very good platform for that.

Michael Cyprys

Awesome. Thanks, guys.

Operator

The next question is from Michael Cyprys from Morgan Stanley. Please go ahead.

Michael Cyprys

Hey, good morning. Thanks for taking the question. So I wanted to ask about digital. You guys have made substantial progress building out the on-chain platform and are expanding distribution. So as you look at over the next couple of years, how are you thinking about the opportunity to translate all of that growth there into meaningful revenue and earnings? Where do you see the greatest monetization? And what might be the one or two or even three things that might be the notable?

Jonathan Steinberg

Catalysts around that. Will, start please.

William Peck

Yeah, happy to continue here. I mean, the first is, you know, as an asset manager, expense ratio, right? So the funds have an expense ratio. If we can, you know, you look at the scale of some other asset that can get very, very big. And so the expense ratio being kind of one main example of that, where even for funds that you might consider or low fee that they can get to be very, very big numbers over time. The second example that I give is or the second thing I would point to rather is the broker-dealer, right? So we do think that there is going to be a real opportunity for the broker-dealer to have, um, kind of non-expense ratio revenue for the business. You know, we will have more to kind of talk about that in 2027 and beyond, but if I really had to point to two, it would be one as the expense ratio as an asset manager, and the second would be services that the broker-dealer could provide.

Jonathan Steinberg

And I will just add, Mike, you know, 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, you know, fulsomely. I think there are three easy ones.

Michael Cyprys

And then just on the partnerships with BitGo, MoonPay, and others, can you just elaborate on the opportunity set that you see to expand distribution and what needs to happen for those partnerships to begin contributing more meaningfully to AUM and flows?

William Peck

Yeah, absolutely. I mean, we just announced them, so very, very recent. But let's take the BitGo example, right? You know, BitGo has a lot of customers, a lot of assets under custody. Some of their customers have not been able to kind of, again, access the risk-free rate kind of natively in a way that's like easy for them within the BitGo environment. And so instead of needing to have held a lot of assets under custody, they are able to access the risk-free rate kind of natively in a way that's like easy for them within the BitGo environment. Assets or not being willing to move over more money into BitGo because they want to have access to their money market fund separately. Now within BitGo Mint, they can just access the money market fund WTGXX directly there. So that's just an example. We are very excited about that. I believe BitGo is very excited about it. Where you can just make it easier for people to access these products directly in the place that they are doing business today.

So success on these partnerships will be all these relationships continue to grow and people are seeing it, oh, instead of just needing to do my, you know, certain crypto trading here or something, I can actually keep more assets in this platform and access WisdomTree's directly there. And it's good for the partner, it's good for the client, and it's good for WisdomTree. So we think it's a really nice way to deliver this product to people.

Michael Cyprys

Great. Sorry, one last one if I could, just on the Binance hack, just curious your viewpoints there and just given this significance of that security incident there at Binance. Just curious how these sort of events potentially impact or affect institutional confidence and the pace of adoption of tokenized assets.

William Peck

Yes, I mean, it's a great question and very recent, so I think we are going to hear more and more news coming out of it. It sounds like the initial reports I read suggested it was some entity affiliated with North Korea doing the hack. So look, for true bear crypto assets, it might be concerning. One thing that I found to be very interesting, in the response to this hack is that the major stablecoin issuers actually froze their stablecoins that were implicated in the hack, and the hacker does not have access to those or is not going to be able to easily, which just shows how when you have actual issuer controls on the assets that you are issuing on-chain, that the desire for hacking those, like the reward for hacking them is just much, much, much less. So it wouldn't really even be possible to do with our money market fund, for example, and the way that happened there, given how we do the transfer restrictions. So long-term, I think this could be, people might have questions about like crypto assets on some centralized exchanges, but I don't know that it's going to impact state stablecoins or tokenized real world assets that are regulated. I think we will see how that kind of continues to develop, but I wouldn't necessarily say it's a negative for those.

Great. Thanks so much. Thank you.

Operator

The next question is from John Coffey from Oppenheimer. Please go ahead.

John Coffey

Hey, good morning. This is John Coffey on for Chris. I have two questions, one on the digital asset platform and one on your surf combined public-private ETFs in the future. On the digital asset platform, have you entertained or maybe if you look out several years in the future, do you think that there could be any sort of significant revenues that could come from ETFs? Like maybe tokenization as a service, not just from your asset management fees, but maybe for other people who have certain assets, public or private, who want to wrap them in a token? Is that, I mean, it would seem like you would have the technology to do that. Is that something you have contemplated or you have some kind of partnerships that could, you know, lead to that eventually?

Jonathan Steinberg

Will?

William Peck

Yeah, it's definitely something we have contemplated, you know, mentioned that briefly in the prepared remarks and the presentation. There are active conversations regarding it today. I mean, before we get into like what the revenue impact of that might be, which we stalled out earlier, some of the major areas of revenue we are seeing, we do think it's very constructive for all of those ways that we can earn money to have like a really vibrant like thriving ecosystem of on-chain funds, on-chain ETFs. If we can help bring that about and play a role in that, would view that to be very constructive. Also, other transfer agents are going to try to do that as well. That can continue to be constructive, but we think there's like a right way to do this and would be very customer friendly. And we do view it being, there is going to be a multi-issuer future in this way.

And we think our tokenization as a service offering could play a really important role in that.

Jonathan Steinberg

I also just wanted to add, you know, that is one way that we might be able to demonstrate the inherent value in the investments that we have made in the platform. And some of those announcements could be constructive in really closing the gap between how the stock is valued today, and what we think the embedded value that we have in. So we are looking forward to pursuing that.

John Coffey

Well, thank you. And I just have one other question. And I know, again, it's very early days on, um, these products that would be sort of a joint public and private fund. But I was thinking if we were to look forward to that, do you think the model would be something like what you maybe would have with Cirrus, that the private assets would come from a company you own 100% of? Or would it be something more like you would buy private, maybe pre-IPO shares or some kind of private equity holding just from other parties? Would eventually be, you know, like put into different funds so he is wondering like with essentially how you think about the sourcing of the private equity funds would be or the private equity assets would be.

Jonathan Steinberg

Um, so I think it will be a combination of things that we own completely, um, like, uh, Cirrus, and I think that there will be more of a partnership type of, uh, relationship, um, in, uh, sort of the venture side of, uh, bringing privates to sort of, equities. So we will leave it at that, but I think it will be a combination of both. Thank you very much. Thank you.

Operator

The next question is from Mike Grondahl from Northland Securities. Please go ahead.

Mike Grondahl

Hey, thanks, guys. We have seen some news about wealth platforms looking to charge – ETF platform fees. Just wondering what you think this dynamic looks like potentially for WisdomTree.

Bryan Edmiston

Bryan or Jarrett, Bryan, you want to go first, I think? Um, sure. I can give you just some outlook as it relates to any potential financial impact, and then maybe Jarrett, you can fill in with a lot more color. But without getting into any specifics regarding any particular relationships, these 3rd party distribution fees, they are roughly, you know, 3% of our total revenue based on recent experience. We will formalize our 2027 guidance next quarter, but there shouldn't be a material deviation from this ratio going into next year.

Unknown Speaker

Yes, and I just double underline that. Distribution economics have been part of what we do for years. This is part of the business. What we do is we make sure that every dollar spent on a platform fee, results in value add to us so that as we grow assets on the platform, as the platforms grow, we get a return on that money spent. Yes, you have seen recent agreements. Those may affect others more than they do us. Um, but we are, you know, as Bryan said and as I have already said, it's part of what we do, and it works well for us right now.

Jonathan Steinberg

And I would just add, you know, the efficiency of our model, the margins that we are demonstrating is very constructive that, you know, it's a part of the business today. Bryan just said that it doesn't, um, the outlook may not change as a percentage of revenue. What are we paying for distribution or access? And so, again, having such an efficient model, we can afford this, and it's a part of the business plan.

Mike Grondahl

Got it. And then secondly, the portfolio solutions or models business seems to be a very good idea. To be really accelerating, you know, $10 billion now. What is really driving that, and do you see that continuing?

Jonathan Steinberg

Thank you. Jarrett and maybe Jeremy.

Unknown Speaker

Yes, I can maybe start on that one. You are right, flows are strong there. The growth in the models and solutions business actually outpaces or leads the growth engine for the firm. Also, you know, I think everyone should recognize the flows are higher quality. There is lower turnover, stickier assets. The areas of continued growth right now that are driving the growth within that growth, custom models. In the U.S. have been really gaining a lot of traction and driving the recent growth that we are seeing. But then something like Atlantic House is just an incredible addition.

And I would say on Atlantic House a couple things, you know, that integration couldn't have gone smoother, we couldn't be happier with that acquisition. But Atlantic House has also added reach to our models and solutions business, and they have added more tools to the toolkit. So they will also be contributing great growth to the global effort. Um, and, and we will also be bringing some of those capabilities to the U.S. to help further accelerate the U.S. effort. So it's a major focus area. Flows are strong and they continue to really be a growth driver for the firm as a whole.

Operator

Got it. Thank you. [Operator Instructions] The next question is from Alex Blostein from Goldman Sachs.

Unknown Speaker

Hey, everyone. This is actually Aditya filling in for Alex this morning. Thank you so much for taking our question. So, had a question on the SEC innovation exemption. And probably some, you know, just looking for some clarity around that. So your U.S. tokenized funds today are digital funds rather than ETFs. Does the innovation exemption change how you think about bringing the U.S. ETF lineup itself on chain or does the digital fund wrap or remain the preferred vehicle?

Jonathan Steinberg

Great question, Will?

William Peck

Yeah, it is a great question. So if you look at all the filing we made on the tokenized ETF, you look at how our digital funds actually work as you noted them. It's actually the funds that are issuing the shares directly on chain. It's an issue response or tokenization model where they are really direct registration, right? So if you have the share of the money market fund in your wallet, you are on the shareholder register. It's different than a lot of the various wrapper models that exist out there. You know, certainly offshore, you have seen a number of whether they are notes or kind of other SPVs that are kind of wrapping existing securities and providing exposure to that wrapper, but not necessarily the underlying. With the innovation exemption, you have seen more examples and people trying to bring together. Forward models of which a security entitlement is in there. I think we will see how that kind of continues to evolve.

We are very confident in our model of having the fund issue shares directly on chain, what the benefits might come from doing that and creating a really good investor experience by doing that. It's going to be important, like the total cost of execution for these exposures, making sure that people can access them in a way that's very convenient for them and also trade them at a low execution cost. So that's something that we are focused on, very confident in our model for doing that, and that model is fully supported within the innovation exemption as well.

Jonathan Steinberg

And, Will, again, tying tokenized ETFs into your TAMP and into your broker-dealer, the other revenue streams, I mean, does it all hold together?

William Peck

Absolutely. Yes, absolutely. I mean, this is the direction of travel that we saw, you know, probably 2 years ago now. And it's encouraging to really see it play out. And that the way that we have built the platform is, we think, setting up very well for what we think is going to be to continue to come into space, including as contemplated in the innovation exemption. Thank you, Will. Great. Thank you.

Operator

There are no further questions at this time. I would like to turn the floor back over to Jonathan Steinberg for closing comments.

Jonathan Steinberg

Well, thank you everyone for your interest and attention today. And please continue to watch the WisdomTree story very carefully. There will be a lot of news coming in the future. So thank you all. Have a great day.

Operator

This concludes today's conference. Thank you for participating. You may disconnect your lines at this time. Thank you for your participation.

This live transcript is auto-generated without human intervention or review.