WisdomTree Achieves SEC Approval For 24/7 Trading of Tokenized Treasury Fund

By: Eva Baxter

In a groundbreaking development within the financial sector, WisdomTree, a prominent US-based asset management firm, has gained approval from the US Securities and Exchange Commission (SEC) to enable round-the-clock trading and instant settlement of its tokenized Treasury money market fund. This move marks the first instance of a registered tokenized mutual fund being authorized to trade continuously under the Investment Company Act of 1940. The introduction of this model allows for shares to settle instantly, providing investors with seamless access to yield-bearing US Treasurys in real-time.

The innovation is facilitated through WisdomTree's Treasury Money Market Digital Fund (WTGXX), which now supports 24/7 secondary trading within a fully compliant US regulatory framework. By leveraging a dealer-principal model, the company has effectively transformed the trading landscape, enabling immediate settlement for the fund's shares. This ensures that investors are no longer constrained by traditional market hours, thus expanding the accessibility and flexibility of investing in tokenized assets.

To ensure compliance with US regulations, WisdomTree sought and received exemptive relief from the SEC. The firm also collaborated with its affiliated broker-dealer, WisdomTree Securities, which received additional approval from the Financial Industry Regulatory Authority (FINRA), a critical regulatory body overseeing US broker-dealers. The collaboration between these entities underscores the importance of regulatory compliance in pioneering financial technologies.

This advancement by WisdomTree indicates a significant shift towards integrating blockchain technology into mainstream finance, aiming to bridge the gap between traditional financial systems and modern digital assets. As blockchain technology continues to evolve, initiatives like this could pave the way for greater innovation and accessibility in financial markets, fundamentally transforming how investors interact with and manage their assets.