Lotus Selects WisdomTree Treasury Money Market Digital Fund as Part of the Reserve Framework for DeFi Lending Markets


[April 23, 2026] Lotus, a tranched DeFi credit market, announced WisdomTree’s Treasury Money Market Digital Fund (WTGXX) as a reserve asset referenced in the reserve framework supporting LotusUSD. It represents one of the first instances of a money market fund being referenced within a decentralized finance (DeFi) lending protocol. 

Money Market Funds, like WisdomTree's WTGXX, may be referenced as part of the reserve structure for what Lotus calls "productive debt.” LotusUSD earns the risk-free rate, so lenders earn yield even when capital is idle.

"DeFi lending has always had a structural gap: the existing infrastructure simply could not support the kind of products that lenders and borrowers actually need," said David Reising, Founder and CEO at Lotus. "Productive debt is one way we close that gap. By embedding a money market fund at the loan asset level, we are creating more efficient markets that ensure lenders earn yield independent of utilization."

"We are seeing growing interest in connecting regulated financial assets, such as WTGXX, with blockchain-based infrastructure," said Maredith Hannon, Head of Business Development for Digital Assets at WisdomTree. "This momentum reflects broader exploration of how tokenized traditional assets may be used within emerging digital ecosystems.”  

In standard DeFi lending protocols, yield is dictated by utilization. When demand is low, lenders earn little or nothing. 

Lotus addresses this by making the loan asset itself yield-bearing: capital supplied through Lotus markets are backed by LotusUSD, a vault token composed of USDC and tokenized short-term US Treasuries, including money market funds. LotusUSD is therefore designed to reference a reserve composed of yield earning tokenized exposure such as short-term U.S. Treasuries, which, when incorporated into the structure, are designed to contribute to a yield floor even at zero utilization. This enables lenders to earn a baseline yield even when demand is low, encouraging deposits across a larger range of risk levels, therefore expanding loan options for borrowers.

The move signals a broader shift in how DeFi lending protocols can leverage regulated financial infrastructure, without compromising the mechanics that define the space.

The integration is made possible in part by WisdomTree's recently granted SEC exemptive relief for 24/7 trading and instant settlement by a broker-dealer holding shares of WTGXX, the fund. This makes WTGXX the world’s first and only tokenized MMF to receive exemptive relief from the SEC to allow broker-dealers to potentially provide instant, around-the-clock trading and settlement of WTGXX, subject to SEC exemptive relief conditions.

The ability to instantly sell shares of the fund, up to the balance sheet capacity of WisdomTree Securities, can facilitate use within DeFi infrastructure, which operates around the clock.

Lotus is currently in pre-mainnet development, with LotusUSD, including WTGXX as part of the reserve framework, scheduled to go live at launch. The protocol is designed to allow lenders to choose yield and risk profiles that reflect the risk they are actually taking, while creating more efficient conditions for borrowers than existing DeFi lending markets offer. 

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About Lotus
Lotus is an onchain lending protocol that lets lenders and borrowers meet on a risk curve inside a single market. Instead of creating separate pools for every risk setting, Lotus uses tranches to offer multiple risk levels while keeping liquidity connected. For more information, visit lotuslabs.net.

Lotus has independently determined to include WTGXX within its protocol. References to WTGXX or WisdomTree should not be interpreted as an endorsement of the Lotus protocol or its products or services by WisdomTree or its affiliates. WisdomTree is not affiliated with or responsible for the Lotus protocol, and WTGXX is not managed in connection with the protocol and does not participate in its lending or credit activities.

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Emma Murphy

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