SEC Approves 24/7 Trading for Tokenized Fund
The U.S. Securities and Exchange Commission has approved WisdomTree's plan for a tokenized money market fund that can trade and settle around the clock on a blockchain. The move enables intraday settlement for mutual fund shares, a significant step in integrating traditional financial products with blockchain infrastructure. This development builds on a growing trend of tokenized securities, with some commentators suggesting it could be the biggest narrative of 2026.
- The specific fund is the WisdomTree Treasury Money Market Digital Fund (WTGXX), which currently holds about $730 million in assets. This fund is accessible across nine different blockchain networks, including Ethereum and Solana. - The approval grants exemptive relief from the Investment Company Act of 1940, which typically restricts mutual funds to pricing once daily. This allows a WisdomTree broker-dealer subsidiary, with FINRA approval, to trade the fund's shares from its own inventory at a stable $1 price. - Institutional investors will be the first to access this 24/7 trading feature through WisdomTree's "WisdomTree Connect" platform, with USDC serving as the initial stablecoin for settlement. - A key technical feature is the fund's "continuous dividend accrual," which uses blockchain timestamps to track ownership and properly allocate daily yield to shareholders, even for shares held for only part of a day. - The market for tokenized U.S. Treasury products has grown to over $10 billion, with major competitors including BlackRock's BUIDL fund ($2.17 billion AUM) and Franklin Templeton's FOBXX fund ($901 million AUM). - Growth in this sector was significantly influenced by the July 2025 GENIUS Act, which prohibited interest-bearing stablecoins in the U.S. This positioned tokenized funds as one of the few regulated options for generating yield on cash balances held on public blockchains.
