WisdomTree has partnered with MoonPay to open its WTGXX tokenized Treasury money market fund to MoonPay's 35 million user accounts. MoonPay will also hold WTGXX against its stablecoin reserves, adding a significant institutional use case. The fund stands at $1.23 billion, making it the fifth-largest product in a tokenized Treasury market now totaling $15.4 billion.
For Armada's crypto repo desk, growing scale and distribution of WTGXX increases its viability as repo collateral alongside existing tokenized T-Bill instruments. The MoonPay stablecoin reserve backing introduces a new collateral demand dynamic that could affect WTGXX liquidity and redemption behavior under stress. Armada should evaluate whether WTGXX meets its collateral eligibility criteria and assess the MoonPay reserve structure for counterparty risk before any onboarding discussion.