WisdomTree Prime’s digital money market fund to become Visa debit card funding source

WisdomTree, Inc., a global financial service provider, announced that users of its Visa debit card can now select the WisdomTree Government Money Market Digital Fund (WTGXX) as a source of funds for expenditures. As of October 7, investors in WTGXX could now earn a 7-day yield of 4.6%.

The 7-day yield was available until the WTGXX shares were sold to fund purchases, thus strengthening the spending and yield-bearing investment connections.

WT Prime claimed that connecting spending capabilities to a liquid on-chain investment unlocked the utility of RWA (real-world asset) tokenization for qualifying customers. 

WidomTree Prime bridges the gap between digital finance and daily spending  

🔓 Unlock your money’s earning potential until you are ready to spend it.

Select the WisdomTree Government Money Market Digital Fund to fund your debit card spending & enable your tokenized funds to transition seamlessly from investing to spending.https://t.co/yq8bckeAMi pic.twitter.com/63hosU3o10

— WisdomTree Prime® (@WisdomTreePrime) October 9, 2024

The ETPs solutions provider confirmed that consumers could benefit from their cash investments in WTGXX within the new WisdomTree Prime platform. The platform offered greater control and choice by integrating saving, spending, and investing. 

Will Peck, the Head of Digital Assets at WisdomTree, pointed out that linking yield-earning assets directly to spending functionalities enabled users to fund their daily expenditures within one app. He added that the funding mechanism potentially earned daily yields through the WTGXX investment until the investment was sold to enable spending.    

“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,” 

-Will Peck

WT Prime asserted that more capabilities and products would be scheduled to become available incrementally within the app on a ‘rolling basis.’ 

Investing in WisdomTree un-insured products and services remains a coin-toss

According to WT Prime, changes in credit ratings or interest rates could affect the WisdomTree Government Money Market Digital Fund’s yields. While the WTGXX money market fund is registered with the U.S. SEC, it is not insured by the FDIC or guaranteed by a U.S.-regulated bank. The agency required WTGXX to make comparatively lower-risk investments.

WT Prime disclosed that the fund can not guarantee the preservation of investment values at $1 per share. It also said investors can lose money by investing in the fund. The fund’s advisor is in no way required to reimburse lost funds, and investors are not to expect the advisor to provide any financial assistance to the fund, including during market stress periods.

WT Prime warned investors to be careful when considering the fund’s risks, objectives, expenses, and charges.

Spending or making purchases requires actions to be taken at the user’s discretion. This requires user actions outside the WT Prime app’s domain and functionality, which relies on third parties. In some cases, users and third parties require a separate relationship. 

Taxes will be applied to all the transactions made through the WisdomTree Prime Visa debit card.