WisdomTree Secures SEC Approval for 24/7 Trading of Tokenized Money Market Fund
WisdomTree has received approval from the U.S. Securities and Exchange Commission (SEC) to allow its innovative WisdomTree Treasury Money Market Digital Fund (WTGXX) to trade around the clock. This pivotal decision, revealed on February 24, 2026, represents a significant advancement in regulatory acceptance of digital asset-backed securities within mainstream finance.
The SEC granted WisdomTree an exemptive relief, marking a historic moment as it enables 24/7 trading and instant settlement of tokenized shares for the first time under the Investment Company Act of 1940. This shift aims to offer continuous liquidity and aligns the operations of tokenized financial products with the traditional market’s operational hours. Investors can trade shares through WisdomTree’s affiliated broker-dealer and utilize USDC for initial settlements, moving away from the previously established daily closing net asset value (NAV) requirements.
Technological Shift in Trading and Settlement
With this approval, the tokenized shares of the WisdomTree fund can be traded continuously, utilizing a blockchain-based infrastructure for instantaneous settlement. This digitization of trading aims to enhance liquidity and efficiency, representing an evolution from conventional end-of-day processing to a real-time marketplace. Under the new framework, trading will operate through a dealer-principal model, a significant departure from how traditional money market funds function.
According to industry experts, this development is poised to reshape how liquidity in the money market operates. WisdomTree’s head of digital assets, Will Peck, asserted that the breakthrough introduces intra-day liquidity while maintaining necessary regulatory protections. As institutions increasingly integrate blockchain technology into their portfolios, this move signals a broadening acceptance of digital assets in established financial systems.
The SEC’s Division of Investment Management was instrumental in issuing the exemption. Additionally, the Financial Industry Regulatory Authority (FINRA) validated WisdomTree Securities’ expanded activities as a broker-dealer for the principal trading of these shares, further solidifying regulatory backing for such innovative financial products.
Market Reception and Industry Implications
The SEC’s approval could have profound implications for investment strategies among institutional financiers, with the fund’s shares maintaining a $1 stable value and offering continuous dividend accrual based on holding duration. Initially available primarily to institutional investors, there are plans for potential expansion into retail markets as well.
The decision has garnered widespread attention in the financial community, with analysts noting that the 24/7 trading capability could attract a new class of investors seeking greater flexibility. As this aligns with the advancements in the broader cryptocurrency ecosystem, it can facilitate enhanced capital flows in tokenized real-world assets (RWAs). This development could also create competitive pressure on traditional asset funds to enhance their liquidity frameworks to include similar innovative models.
Market experts indicate that WisdomTree’s initiative may potentially set a precedent for other traditional financial institutions aiming to embrace digital assets. Observers are keenly watching how this launch influences market behaviors, especially regarding the uptake of digital currency settlements in investment practices.
