WisdomTree has introduced a new feature that allows users to access its tokenized fund via their debit card.
According to an announcement, users can choose the WisdomTree Government Money Market Digital Fund (WTGXX) as a source of funds for their WisdomTree Prime Visa Debit Card.
Debit cards are usually funded by checking accounts with low or no interest. Instead, WisdomTree Prime users can spend directly from their yield-bearing money market funds.
WTGXX currently offers a 7-day yield of 4.60%, allowing users to earn income from their holdings until it is used for consumption. This “strengthens the link between spending and yield-bearing investments,” WisdomTree said.
WisdomTree Prime connects liquid on-chain investments with spending opportunities, giving customers a way to tap into the potential of real-world asset tokenization (RWA).
“The purpose of WisdomTree Prime from its inception has always been to give consumers choice. In this case, rolling out the ability to connect our money market digital fund to our debit card gives users choice in how they put their money to work,” said Will Peck, Head of Digital Assets at WisdomTree.
“We all have a traditional checking account, which generally does us no favors. By connecting a return-earning asset directly to our spending functionality, users can fund their daily in-app purchases with the funding mechanism potentially earning returns every single day via a WTGXX -investment until the investment is sold to facilitate consumption.”
WisdomTree’s Bitcoin ETF is the 12th largest by AUM at $79.7 million with a market cap of $226.4 million.
Last month, global payments giant Visa unveiled its new Visa Tokenized Asset Platform (VTAP), which will allow banks to issue fiat-backed tokens of real assets like bonds or commodities on Ethereum.
Spanish bank Banco Bilbao Vizcaya Argentaria (BBVA) is among the first financial institutions to use the platform, which aims to roll out a live pilot in 2025.
Visa Steps Up Crypto Game with Tokenized Asset Platform
By allowing banks to create and distribute fiat-backed tokens, VTAP aims to bridge the gap between traditional finance and the burgeoning world of blockchain.
With the approval of rules for their use by a consortium of financial institutions, efforts to enable tokenized shares of money market funds from Wall Street giants such as BlackRock and Franklin Templeton as collateral in trading have taken a significant step forward.
A subcommittee of the Global Markets Advisory Committee of the Commodity Futures Trading Commission decided to forward its recommendations on the subject to the full committee.
Tokenized shares as collateral are moving closer to reality
This development marks a significant step towards integrating blockchain technology into traditional finance, potentially unlocking over $2 trillion in tokenized assets by 2030.
Mutual funds, bonds, exchange-traded notes, loans, securitizations and alternative funds are the primary drivers of the tokenized market, which McKinsey predicts could reach over $2 trillion by 2030.