Cap, the stablecoin protocol built for credible financial guarantees, has taken another major step toward connecting traditional finance with onchain infrastructure. The project has integrated the WisdomTree Government Money Market Fund (WTGXX) as an approved collateral asset within the Cap Stablecoin Network (CSN).
This marks a first-of-its-kind integration in which a regulated U.S. money market fund is being directly onboarded as collateral in a decentralized stablecoin system. The move could accelerate the convergence of traditional financial markets and autonomous smart-contract-based yield infrastructure.
A Bridge Between Institutions And DeFi
The Cap Stablecoin Network manages collateral and yield generation for cUSD, Cap’s stablecoin. Through CSN, users can instantly settle USD deposits and allocate them across multiple collateral sources, all managed transparently on-chain.
With WTGXX now integrated, WisdomTree clients can deposit fund shares into CSN and redeem them for any of the network’s reserve assets. Because WTGXX is a permissioned asset, Cap coordinated directly with WisdomTree to facilitate onboarding. It’s an indication that TradFi will continue adapting to blockchain-based settlement.
“Integrating WTGXX represents a major step toward uniting traditional financial instruments with decentralized yield infrastructure,” said Dave L., Head of Growth at Cap. “Institutional-grade collateral can now flow directly into autonomous, smart-contract-secured markets without sacrificing transparency or compliance.”
Expanding Collateral Beyond Stablecoins
Until now, Cap’s collateral base consisted primarily of stablecoins such as USDC. The addition of WTGXX expands this foundation to include regulated real-world assets, reinforcing Cap’s commitment to building a fully transparent, onchain marketplace for yield.
From its earliest days, Cap has aimed to solve one of stablecoins’ most enduring limitations: a reliance on opaque custody or volatile crypto collateral. Instead, Cap’s Type III stablecoin model merges offchain and onchain yield in a system governed by objective, rule-based market mechanisms rather than human discretion. This structure allows depositors to access institutional-grade yield while maintaining full transparency and safety through on-chain infrastructure.
“Cap’s vision is to improve the legacy credit system with autonomous smart contract infrastructure,” said Benjamin S.P., Founder of Cap. “Onboarding WTGXX as collateral signals a desire from traditional institutions to participate in that new infrastructure.”
A Step Toward Institutional Yield at Scale
For Cap, the integration with WisdomTree is a validation of its design philosophy. By connecting permissioned assets like WTGXX to permissionless yield infrastructure, Cap is helping bridge the gap between institutional capital and decentralized markets.
This alignment between traditional financial discipline and onchain transparency echoes a broader vision that early supporters have shared: to create a stablecoin system where users, operators, and institutions are aligned through transparent, market-driven incentives. The result is a foundation for stable, sustainable yield that can scale responsibly across both TradFi and DeFi environments.
