WisdomTree has introduced a new feature that allows users to access its tokenised fund via their debit card.
According to an announcement, users can select 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 low or no-interest checking accounts. Instead, WisdomTree Prime users can spend directly from their yield-bearing money market fund balances.
WTGXX currently offers a 7-day yield of 4.60%, allowing users to earn income on their holdings until it is used for spending. This “strengthens the connection between spending and yield-bearing investments,” WisdomTree said.
WisdomTree Prime links liquid on-chain investments with spending options, which offers customers a way to tap into the potential of real world asset (RWA) tokenization.
“The purpose of WisdomTree Prime from its genesis has always been to empower consumers with choice. In this case, rolling out the capability to link 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 that generally isn’t doing us any favors. By connecting a yield-earning asset directly to our spending functionality, users can fund their daily purchases all within the app with the funding mechanism potentially earning yield every single day via a WTGXX investment until the investment is sold to facilitate spending.”
WisdomTree’s Bitcoin ETF is the 12th biggest by AUM, holding $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-world 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 targets to rollout a live pilot in 2025.
Visa Steps Up Crypto Game With Tokenized Asset Platform
By empowering 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 tokenised shares of money-market funds from Wall Street giants like BlackRock and Franklin Templeton as collateral in trading have a significant step ahead.
A subcommittee of the Global Markets Advisory Committee of the Commodity Futures Trading Commission decided to forward its recommendations about the subject to the whole committee.
Tokenized Shares as Collateral Moves 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, securitisations, and alternative funds are the primary drivers of the tokenised market, which McKinsey predicts may reach over $2 trillion by 2030.
