Asset manager WisdomTree has integrated its Government Money Market Fund (WTGXX) into the Cap Stablecoin Network, allowing the fund to be used as collateral. This move enables existing WisdomTree clients to deposit their MMF shares to mint Cap's native cUSD stablecoin and access on-chain yield opportunities.

The integration marks a significant step in bridging traditional financial products with decentralized finance protocols. By incorporating a regulated, 1940 Act-registered fund as collateral, the Cap Stablecoin Network expands its reserve base beyond crypto-native assets like USDC. This framework also introduces a mechanism to segregate KYC-verified institutional deposits from non-verified sources, setting a new precedent for compliance within DeFi.

The collaboration aims to provide a stable, base yield for the network's reserves drawn from the underlying government securities held by the WTGXX fund. To ensure accurate on-chain pricing and valuation, oracle partner Redstone has updated its cUSD price feed to include the WTGXX reserves.

This partnership signals a growing trend of tokenizing real-world assets (RWAs) to create compliant, transparent, and efficient pathways for institutional capital to participate in the on-chain economy. It strengthens the foundation for a marketplace connecting institutional-grade yield with DeFi infrastructure.