WisdomTree has announced a significant advancement in financial technology by enabling debit card holders to spend directly from its tokenized on-chain money fund. This integration allows users to link the WisdomTree Government Money Market Digital Fund (WTGXX) with their Visa debit cards. With this feature, users can seamlessly fund their daily purchases through a dedicated app while potentially earning yield from their WTGXX investments until they decide to convert it into cash for spending.
Will Peck, the head of digital assets at WisdomTree, highlighted the innovative nature of this offering, which aims to combine convenience and investment growth. The WTGXX fund is a tokenized real-world asset fund, encompassing United States Treasury bills and other highly liquid assets, currently yielding around 4.6% as of October 9.
As of now, the fund manages approximately $12 million in assets, reflecting a growing interest in tokenized investment solutions. WisdomTree is at the forefront of this trend, operating over a dozen tokenized investment funds that range from money market instruments to S&P 500 stocks and US Treasury bonds.
Among its substantial offerings, the largest funds by assets under management include the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) and the Franklin OnChain US Government Money Fund (FOBXX), boasting assets under management of approximately $520 million and $440 million, respectively.
This clearly indicates the trust and reliance on tokenized solutions by both institutions and individual investors alike. In a strategic move, WisdomTree launched an RWA platform called WisdomTree Connect in September. This innovative platform is designed to provide users access to the asset manager’s regulated fund tokens across various wallets or blockchain networks.
The initial phase of the platform features third-party custodians for the custody of users’ tokenized investment funds, while a digital record of ownership is sent to the user’s personal wallet. The overall goal of WisdomTree is to broaden access to its real-world assets (RWAs) to an array of customer-facing platforms and apps, appealing even to retail users with self-hosted wallets.
As the interest in real-world assets surges, these assets—including tokenized claims on financial instruments, commodities, or art—currently hold nearly $13 billion in total value locked. This represents a staggering $30 trillion market opportunity globally, as noted by Colin Butler, Polygon’s global head of institutional capital.
The developments within WisdomTree not only highlight the evolution of financial instruments but are also indicative of the broader shift towards digital investments in a technology-driven economy..