SEC-Registered Fund Offered by WisdomTree under GENIUS Act Compliance Standards
WisdomTree Treasury Stock Market Money Market Digital Fund Aligns with GENIUS Act
The WisdomTree Government Money Market Digital Fund (WGTXX) has announced that it will revise its investment strategy to comply with the recently passed GENIUS Act. This move will solidify WGTXX's position as a reserve asset for stablecoin-native businesses.
The GENIUS Act establishes a federal framework for stablecoin issuers to invest their reserves in the U.S., providing enhanced protections through board oversight of fund operations, stress testing, and a bankruptcy-remote structure. This insulates investor assets from the sponsor's balance sheet.
By November 1, 2025, WGTXX will focus on investing in Treasury securities maturing in 93 days or less and overnight repurchase agreements backed by Treasury securities. This change will exclude U.S. government agency securities and longer-maturity Treasuries, aligning with the reserve asset requirements for stablecoin issuers under the GENIUS Act.
Despite the portfolio adjustments, the Fund's investment objective remains unchanged. It continues to focus on providing a high level of current income consistent with preservation of capital and liquidity, and maintaining a stable $1.00 net asset value (NAV) per share.
The Fund will maintain the positive attributes and protections of the U.S. registered money market mutual fund structure. It will continue to operate as a money market fund, enjoying all the privileges and safeguards that Rule 2a-7 offers, including strict limits on portfolio maturity, high credit quality standards, built-in diversification requirements, and robust liquidity thresholds.
The passage of the GENIUS Act paves the way for digital asset investment. It has the potential to make stablecoins a mainstream payment tool, unlocking access to the full U.S. stock market and payments infrastructure. The reserve requirements put in place by the Act provide a foundation that will underpin and facilitate the acceptance of stablecoins, laying the groundwork for broader trust, adoption, and growth.
The protections serve as a comprehensive risk management framework, mitigating credit, liquidity, and market risks to safeguard investors' capital and preserve the stability of the Fund's $1.00 NAV.
Market conditions may cause the Fund's yield to be lower relative to government money market funds investing in a wider universe of investments. However, WGTXX continues to provide an attractive risk-return profile for money market investors.
The Fund's management fee remains unchanged, and its ticker symbol of WTGXX will remain the same. On or around November 1, 2025, the Fund will rebrand as the WisdomTree Treasury Money Market Digital Fund.
As of August 29, 2025, the Fund held 8.45% in agency securities and no Treasuries maturing in over 93 days. The portfolio adjustments may result in a relatively small impact on yield, but they unlock access to a broader universe of investors.
In conclusion, the WisdomTree Treasury Money Market Digital Fund's alignment with the GENIUS Act positions it as a key player in the emerging stablecoin market. Its commitment to preserving capital, maintaining liquidity, and providing a stable return makes it an attractive option for investors seeking a low-risk, high-yield investment in the digital asset space.
