The U.S. Securities and Exchange Commission (SEC) approved a special request from asset manager WisdomTree that allows shares of its Treasury Money Market Digital Fund to trade at $1 with an intraday dealer, regardless of the fund’s end-of-day net asset value.
Until now, investors in the fund, which trades under the symbol WTGXX, had to make end-of-day transactions at the fund’s net asset value, as is typical for traditional mutual funds. The new structure allows transactions to take place 24 hours a day through a broker-dealer acting as principal, with instant settlement on blockchain rails.
WisdomTree said the approval required a waiver from the SEC and regulatory authorization from FINRA to expand the activities of its broker-dealer subsidiary. Under the new model, transactions are made against the dealer’s inventory rather than directly with the fund, allowing for 24/7 liquidity while keeping the fund’s primary structure intact.
“This is a true innovation and improvement in the investor experience, and demonstrates how blockchain can serve as a new set of rails for the capital markets,” Will Peck, head of digital assets at WisdomTree, said in a statement Tuesday.
WisdomTree also introduced continuous dividend accumulation for the fund, allocating interest based on how long each wallet held shares throughout the day. The feature tracks wallet activity on-chain, ensuring that even midday transfers don’t lose a chunk of performance.
The company plans to make the functionality available to institutions first through its Connect platform, with possible retail access later through its Prime app.
The change marks a step in the broader push to tokenize parts of the capital markets. Several large banks and asset managers have piloted blockchain-based systems to issue and settle traditional assets, aiming to reduce settlement times and operational friction. Tokenization refers to the representation of financial instruments as digital tokens on a blockchain, allowing ownership to move in near real time.
Money market funds backed by U.S. Treasuries have become a key test case. According to data provider rwa.xyz, there are currently more than $10 billion in tokenized US Treasury bonds in circulation.
Leading the way is BlackRock and Securitize’s BUIDL fund, which has more than $2 billion in total value locked, a metric that reflects the dollar value of assets committed to the on-chain product. Other offerings include products from stablecoin issuer Circle (CRCL) and Ondo Finance.
With SEC approval, WisdomTree joins a growing group of companies seeking to incorporate traditional cash management tools into blockchain infrastructure without departing from the existing regulatory framework.
