WisdomTree Wins Approval for 24/7 Tokenized Fund
WisdomTree has secured approval for a tokenized Treasury Money Market Fund that allows for instant settlement and 24/7 trading. The move eliminates traditional market hour limitations and marks a significant step toward integrating blockchain-based rails into mainstream capital markets.
The WisdomTree Treasury Money Market Digital Fund (WTGXX) secured exemptive relief from the SEC, a first for a fund governed by the Investment Company Act of 1940. This allows it to bypass certain regulations that apply to traditional mutual funds. The approval permits a dealer-principal model, where WisdomTree's subsidiary can trade the tokenized shares using its own inventory. This structure enables 24/7 trading and immediate settlement, a significant departure from the typical T+1 settlement of traditional markets. Trades will initially be settled using USDC. This model allows investors to buy and sell shares at a stable $1 net asset value at any time, eliminating the "cash drag" associated with waiting for market hours. A key innovation is the continuous dividend accrual, which uses blockchain timestamps to calculate and distribute interest based on how long each wallet holds the tokens. This means investors earn yield even on shares held for only part of a day. The fund is available on multiple blockchains, including Ethereum and Solana. This move places WisdomTree alongside other major players like BlackRock, which launched its BUIDL tokenized fund in March 2024. BlackRock's fund, tokenized by Securitize, has also expanded to multiple blockchains and is used as collateral on platforms like Binance. The broader tokenized U.S. Treasury market has grown significantly, fueled by rising institutional adoption and clearer regulatory frameworks. Initially, the 24/7 trading will be available to institutional investors through the WisdomTree Connect platform. A retail version is planned for later release via the WisdomTree Prime app. WisdomTree's CEO, Jonathan Steinberg, views tokenization as a foundational shift in financial infrastructure, comparable to the impact of ETFs.
