WisdomTree has introduced a new feature that allows users to access tokenized funds via debit card.
According to the announcement, users can select WisdomTree Government Money Market Digital Fund (WTGXX) as the funding source for their WisdomTree Prime Visa debit card.
Debit cards are typically funded by low- or no-interest checking accounts. Instead, WisdomTree Prime users can spend directly from their high-yield money market fund balances.
WTGXX currently offers a 7-day yield of 4.60%, allowing users to earn income from their holdings until they are spent. This “strengthens the link between spending and yield-bearing investments,” WisdomTree said.
WisdomTree Prime brings together liquid on-chain investments and spending options, giving customers a way to leverage the potential of real-world asset (RWA) tokenization.
“WisdomTree Prime’s purpose from its inception has always been to give consumers choice. In this case, by rolling out the ability to link money market digital funds to debit cards, we are giving users more control over their money. Will Peck, Head of Digital Assets at WisdomTree, said:
“We all have traditional checking accounts, but they generally don’t offer any benefits. By connecting income-producing assets directly to our spending capabilities, our users have access to a funding mechanism. You can use it to fund all your daily purchases within the app, potentially earning income through your WTGXX investments every day until your investments are sold to fuel your spending.”
WisdomTree’s Bitcoin ETF is the 12th largest ETF by assets under management, with $79.7 million in holdings and a market capitalization of $226.4 million.
Last month, global payments giant Visa announced the new Visa Tokenized Asset Platform (VTAP), which allows banks to issue fiat-backed tokens of real-world assets such as bonds and commodities on Ethereum. did.
Spanish bank Bilbao Vizcaya Argentaria Banco (BBVA) will be one of the first financial institutions to use the platform, with the aim of starting a live pilot in 2025.
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VTAP aims to bridge the gap between traditional finance and the burgeoning world of blockchain by allowing banks to create and distribute fiat-backed tokens.
Efforts to allow tokenized shares of money market funds from Wall Street giants like BlackRock and Franklin Templeton to be used as collateral for trades have taken a major step forward with the approval of usage rules by a consortium of financial institutions.
A subcommittee of the Commodity Futures Trading Commission’s Global Markets Advisory Committee has decided to forward recommendations on this subject to the full Committee.
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This development marks a significant step towards integrating blockchain technology into traditional finance, potentially unlocking more than $2 trillion in tokenized assets by 2030.
Mutual funds, bonds, exchange-traded debt, loans, securitizations, and alternative funds are the main drivers of the tokenization market, which McKinsey predicts could exceed $2 trillion by 2030. I am doing it.
