WisdomTree's acquisition of Ceres Partners aims to expand the custody and tokenization market.

Golden Finance reports that the encryption ETF issuer WisdomTree has announced the completion of its acquisition of alternative asset management company Ceres Partners. This transaction will expand its business into the exchange-traded products (ETP), custody, and tokenization markets. The acquisition amount includes $275 million in cash paid at the completion of the transaction and up to $225 million in contingent payments. (Note: Earn-out is a common valuation adjustment mechanism in acquisition transactions, whereby the buyer can pay additional funds based on the target company's achievement of specific metrics after paying the base consideration. Unlike earn-out agreements, earn-out adjustments place more emphasis on quantifiable objective data, reducing human intervention factors.)