BitGo to Offer WisdomTree's WTGXX Fund via Mint

BitGo’s trust bank will let eligible institutional clients buy, redeem and hold WisdomTree’s tokenised money market fund, WTGXX, without opening an account with WisdomTree, the two companies said on 27 October. Clients will reach the WisdomTree Treasury Money Market Digital Fund through BitGo Mint, according to WisdomTree’s release.

The pitch is convenience. Firms that already keep digital assets with BitGo Bank & Trust could park idle cash in a yield-bearing government fund in the same place. Neither company gave a launch date, and WisdomTree’s release says some features may not be ready at launch.

What BitGo clients will be able to do

According to the release, eligible clients will be able to submit purchase and redemption instructions for WTGXX through BitGo Bank & Trust and move between US dollars, supported stablecoins and fund shares. BitGo’s own post describes this as “native mint and burn”. WTGXX will join USD1 and SoFiUSD among the assets offered through BitGo Mint. The fund will sit “alongside digital assets that clients may already hold at BitGo Bank & Trust”, the release says.

Clients holding the fund will also be able to pass their beneficial interests in WTGXX shares to other eligible BitGo clients through Go Network, BitGo’s settlement network, which BitGo says runs inside qualified custody.

“Institutions should not have to move assets across multiple platforms to access tokenized financial products,” said Mike Belshe, BitGo’s chief executive. Will Peck, head of WisdomTree Onchain, said: “This is about making institutional cash more productive without making it less available.” He added that clients could “potentially use their holdings as collateral” and said: “That is the promise of tokenization: not simply putting traditional investments onchain, but making them more useful.”

BitGo Bank & Trust is regulated by the US Office of the Comptroller of the Currency and is a subsidiary of BitGo Holdings, which is listed on the New York Stock Exchange. BitGo says it provides shareholder servicing and sub-accounting for WTGXX, but is not the fund’s distributor or adviser. The deal extends an existing relationship: BitGo already holds the crypto behind some of WisdomTree’s exchange-traded products in Europe. WisdomTree says it manages about $174.4bn. BitGo posted the news on X the same day.

The caveats are part of the product

The fine print matters here. WisdomTree’s release says: “Collateral, peer-to-peer transfer and certain stablecoin-related services described herein may not be available at launch.” Its general disclaimer adds that products, timing and fees in development “may change or may never become available”. In other words, the features that make this more than a fund subscription, using fund shares as collateral and passing them between clients, are the least certain parts.

The standard money-fund warnings also apply. The fund seeks to keep its value at $1.00 a share but cannot guarantee it, and shares held at BitGo are not bank deposits and are not insured by the FDIC. The release also says the fund’s adviser is not required to cover losses, including during periods of market stress.

Even so, the direction is clear. Tokenised money market funds are moving from standalone products to features inside platforms that institutions already use. The test of a tokenised fund is no longer whether it exists on a blockchain but whether it can move as freely as a stablecoin while paying a yield. J.P. Morgan has put two tokenised money funds on Solana, Hong Kong’s regulator has approved round-the-clock trading of two such funds, and Anchorage Digital has brought its bank-issued stablecoins to Securitize. TSN’s September round-up of tokenised funds showed the same push toward round-the-clock cash and collateral.

For BitGo, the deal gives its trust bank something like a cash sweep for crypto clients. The things to watch are a launch date and whether the collateral and transfer features arrive with it.