WisdomTree, the U.S fund manager, increased assets under management it its suite of 15 tokenized funds from $30m at the start of 2025 to $770m by the end of the year, thanks mainly to growth it its money market digital fund.

Will Peck, head of WisdomTree Digital Assets, told Markets Media: “$1bn is going to be a big milestone and we are planning to hopefully hit that number in the early part of this year.”

WisdomTree launched its money market digital fund (WTGXX) in late 2023 and since then has added 14 additional digital funds. Peck described 2025 as a breakout year for WTGXX.

“This was one of the first tokenized money market funds and uniquely, we have done all of this onshore in the U.S.,” he added. “Our focus has been that we want to have the most functionality in the highest regulatory standards of the U.S.”

WGTXX is a 1940 Act–registered government money market fund. The tokenized money market fund has benefitted from the U.S. administration passing the GENIUS Act in July last year which provided the first federal framework for stablecoins.

Regulatory approval of stablecoins has led to more onshore financial services businesses engaging with stablecoins, and to a number of new stablecoins being created. As a result, WGTXX has been increasingly adopted as a reserve asset for stablecoin-native businesses.

In the Act, Congress set parameters for investing stablecoin reserves. Peck said WisdomTree was the first to make its digital money market fund comply with these reserve requirements, which include maturities of less than 90 days on all instruments in the fund.

“We think being in compliance with the GENIUS Act will allow us to win business,” added Peck.

Reserve management for stablecoin issuers is one of the main uses of the fund, according to Peck, alongside treasury management for corporates and being used as collateral.

“Between those three things we have added a number of clients and significant assets under management,” said Peck.

Peck estimated that the money market fund comprises approximately $740m of the total $770m assets for WisdomTree’s tokenized funds. He expects that as interest rates fall, money market funds will continue to have a huge role but investors will look to diversify and may want to take on some credit risk as the the curve steepens and spreads widen.

He continued that the focus for new fund launches has been yield generation. “Some of the strategies that we had in ETFs map well into the tokenized space,” added Peck.

For example, in December last year WisdomTree launched the Equity Premium Income Digital Fund which aims  to generate consistent income by selling put options bi-weekly on the ETF trust that tracks the S&P 500 Index3, targeting a 2.5% premium.

“ETFs and other 1940-Act funds have demonstrated how options overlay strategies can be made available to a wider range of investors, said Peck. “We’re thrilled to bring an options overlay strategy to the onchain community.’

Peck also highlighted that a few years ago the CME Group allowed short term Treasury ETFs to be used as collateral for the first time, although it is still early days for digital assets to be used as collateral

“We are playing into a similar trend where wrapped instruments can function very well as collateral for certain transactions,” he added.

Competition

WisdomTree is likely to face increased competition as more managers launch tokenized funds. In December last year. J.P. Morgan Asset Management launched My OnChain Net Yield Fund (MONY),  and became the largest GSIB (global systemically important bank) to launch a tokenized money market fund on a public blockchain.

John Donohue, head of global liquidity at J.P. Morgan Asset Management, said in a statement: “With Morgan Money, tokenization can fundamentally change the speed and efficiency of transactions, adding new capabilities to traditional products. This marks a significant step forward in how assets will be traded in the future.”

Peck argued that WisdomTree’s competitive advantage is the customer experience combined with the highest regulatory standards.

For example, in October last year WisdomTree became BNY’s first retail digital assets banking-as-a-service client. BNY became the infrastructure provider for WisdomTree Prime, the first app to provide access to tokenized funds to U.S. retail investors with stablecoin on and offramps via WisdomTree’s stablecoin conversion service.

Peck said BNY provides the bank account that is embedded in the WisdomTree Prime app, so traditional banking rails can operate seamlessly with the crypto rails.

In November last year WisdomTree launched an “On Receipt,” functionality to allow investors to initiate buying its tokenized funds onchain. Previously investors had to buy the fund using a portal, API, or manual systems to initiate activity. WisdomTree said “On Receipt” creates the foundation for programmable fund interactions, where onchain events, smart contracts, or treasury automations can trigger compliant offchain activity in near real time.

Peck continued that WisdomTree also has its own tech stack and transfer agent, in addition to being an asset manager.

“We have capabilities to customize that experience for our clients and we can do our own stablecoin orchestration,” he added. “These are all things that I think are a real advantage for us.”

Growth potential

Peck said the retail side of the digital asset business is continuing to grow.

“Retail assets under management are still small compared to institutions,” he added. “There are some green shoots, and we are continuing to see demand.”

WisdomTree also has the Connect platform to provide access to crypto-native investors and institutions.

In 2026 WisdomTree aims to unlock continued improvement of liquidity of tokenized fund shares as investors value the ability to trade securities intraday on a 24/7 basis. Currently, investors can only transfer fund shares to a wallet that has been approved by WisdomTree, and approved with an NFT (a non-fungible token).

“We always knows who owns what and we are able to map it,” said Peck. “We know that shares cannot be sent to an unknown wallet overseas or who might not be eligible to hold the security.”

WisdomTree believes this universe of authorized investors can be substantially expanded through the introduction of digital identity standards.

“The ability to kind of interact with a broader network of known users and increased liquidity are mportant ingredients for onchain finance to meet its full potential,” Peck added.

He believes tokenised funds have the potential to reach a greater market cap than stablecoins. Amundi Business Intelligence has estimated that tokenized fund assets will grow to $30bn by 2030 on a conservative basis, assuming an ongoing compound annual growth rate of 25% per year. If there is more uptake from traditional distributors, Amundi Business Intelligence said assets could grow to $120bn in the same time period. 

However, beyond 2030 Amundi believes it is realistic that tokenized funds could exceed $1 trillion as the endgame of tokenization will be a convergence between the onchain and offchain world.