WisdomTree links tokenized money market funds with prime debit card spending

WisdomTree is introducing a new feature that allows users to spend from tokenized money market funds using a debit card.

Global exchange-traded fund provider WisdomTree has launched a new feature that allows users to spend directly from its tokenized government money market fund using the WisdomTree prime Visa debit card.

In a press release on Oct. 9, the company said the integration allows consumers to leverage their return-generating investments for everyday purchases, effectively transforming the way they manage their finances.

With a current 7-day return of 4.60%, the WTGXX fund serves as an alternative to traditional low-yield checking accounts. The company explained that by linking these funds to debit cards, users can optimize cash management and generate income while accessing their funds to spend.

“Since its founding, WisdomTree Prime’s goal has always been to give consumers choice. “In this case, the introduction of the ability to link our money market Digital Fund to our debit card gives users the choice of how to invest their money.”

Will Peck, head of digital assets at WisdomTree

Tradfi is turning to tokenized solutions

The initiative underlines WisdomTree’s commitment to integrating savings, spending and investment on a single platform and meeting the growing demand for greater control over financial management. At the same time, other major players in traditional finance are also exploring tokenization opportunities.

As Crypto.news previously reported, State Street, the world’s largest custodial bank, is using blockchain technology to explore the tokenization of bonds and money market funds, joining a wave of firms incorporating distributed ledger technology into traditional finance.

State Street is not alone; BlackRock launched a blockchain-based fund earlier this year, while JPMorgan is actively exploring the use of tokenized money market funds as collateral, which have already tokenized real-world money via stablecoins.