WisdomTree Government Money Market Digital Fund AUM Surpasses $900 Million on Ethereum

The WisdomTree Government Money Market Digital Fund (WTGXX), a tokenized money market fund operating on the Ethereum blockchain, has exceeded $900 million in assets under management (AUM). This significant milestone represents approximately a 90-fold increase in the fund's AUM since the beginning of the year, signaling a growing trend of traditional financial institutions leveraging blockchain technology. The achievement was highlighted by analytics firm Token Terminal, stating, "Wall Street is scaling on Ethereum."

WTGXX is designed to offer investors a high level of current income while prioritizing capital preservation and liquidity, maintaining a stable $1.00 net asset value (NAV) per share. The fund primarily invests in short-term government securities, providing a regulated and secure on-chain investment option. Its shares are "secondarily recorded" on the Ethereum and Stellar blockchains, with WisdomTree Transfers, Inc. maintaining the official book-entry record.

Launched in November 2023, WTGXX is accessible to investors through the WisdomTree Prime mobile application for retail users and the WisdomTree Connect platform for institutional clients. This dual-access strategy underscores WisdomTree's commitment to bridging traditional finance with the burgeoning digital asset ecosystem. The fund's rapid growth reflects increasing institutional demand for tokenized real-world assets (RWAs) that combine the efficiency of blockchain with the stability of conventional investments.

WisdomTree's Head of Digital Assets, Will Peck, has emphasized the utility of integrating yield-earning assets with daily spending capabilities. The firm recently enabled WTGXX as a funding source for its WisdomTree Prime Visa Debit Card, allowing users to earn yield on their balances until funds are used for purchases. This innovation aims to provide greater control and choice to consumers by seamlessly connecting investing and spending within a single platform.

The fund's success positions it as a key player in the evolving landscape of tokenized finance, particularly as stablecoin issuers seek compliant and yield-generating options for their reserves. WisdomTree's strategy aligns with a broader industry shift towards on-chain financial products, offering a regulated pathway for traditional finance to engage with blockchain technology. Regulatory frameworks, such as the GENIUS Act, are also driving the demand for such compliant digital asset solutions.