WisdomTree said stablecoins may face structural repricing as institutions shift idle capital toward yield-generating tokenised funds.
The firm argued that stablecoins remain dominant for payments and liquidity but are inefficient for storing idle capital because they do not generate returns for users.
“For the first time, a regulated MMF can match stablecoin liquidity while generating income,”
Said WisdomTree Digital Assets.
The analysis highlighted tokenised money market funds, including the WisdomTree Treasury Money Market Digital Fund (WTGXX), as alternatives that combine liquidity with yield.
Regulatory frameworks such as the GENIUS Act and Clarity Act currently prevent payment stablecoins from distributing yield, reinforcing their role as non-yielding assets despite issuers earning returns on reserves.
WisdomTree said capital is increasingly splitting into two paths, with funds in motion remaining in stablecoins while idle balances move into yield-bearing instruments.
The shift could reshape on-chain capital allocation, as institutions adopt strategies that separate liquidity needs from income generation within regulated digital asset markets.