WisdomTree Gets SEC Approval for 24/7 Tokenized Fund Trading

- The specific fund is the WisdomTree Treasury Money Market Digital Fund (WTGXX). The approval involved a coordinated effort, requiring exemptive relief from the SEC to bypass certain regulations and a separate clearance from the Financial Industry Regulatory Authority (FINRA) for its broker-dealer subsidiary. - This marks the first time a mutual fund registered under the Investment Company Act of 1940 has been permitted to use a "dealer-principal" model for 24/7 trading. This means liquidity is provided from the inventory of WisdomTree's own broker-dealer, rather than through a traditional exchange. - The 24/7 liquidity will initially be available for institutional clients through WisdomTree's Connect platform, with the USDC stablecoin serving as the settlement asset for trades. Retail availability is planned for a later date through the WisdomTree Prime app. - A new feature called "continuous dividend accrual" has been introduced, which uses blockchain timestamps to track intraday transfers. This allows the fund to allocate a proportionate share of daily interest to shareholders even if the tokens are held for only part of a day. - The WTGXX fund's assets have grown substantially over the past year, increasing from approximately $112 million in February 2025 to around $730 million as of February 2026. The broader market for tokenized money market funds has expanded since the GENIUS Act of July 2025 prohibited interest-bearing stablecoins. - This approval is part of a larger digital asset strategy for WisdomTree, which began launching tokenized funds in late 2023. The firm now offers multiple digital funds with exposure to equities and bonds on various blockchains, including Ethereum, Stellar, and Solana. - The market for tokenized U.S. Treasury products now exceeds $10 billion in assets. Other major players in this space include BlackRock with its BUIDL fund (around $2.17 billion) and Franklin Templeton's FOBXX fund (approximately $901 million).