SEC Grants WisdomTree Relief for 24/7 Trading of Tokenized Fund Shares

TLDR

• WisdomTree’s WTGXX fund now trades 24/7 with instant blockchain settlement.
• SEC issued exemptive relief to allow tokenized fund shares to trade anytime.
• FINRA approved WisdomTree Securities to trade registered fund shares as principal.
• WTGXX continues dividend accrual while moving between wallets on multiple networks.

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The SEC has granted WisdomTree exemptive relief, allowing its Treasury Money Market Digital Fund (WTGXX) to trade 24/7 with instant settlement. Investors can now move, spend, or trade fund shares at any hour using blockchain and stablecoins. This makes WTGXX the first registered tokenized mutual fund in the U.S. to offer round-the-clock liquidity while continuing dividend accrual across multiple blockchain networks.

WisdomTree Launches Continuous Trading

The SEC granted WisdomTree exemptive relief for its Treasury Money Market Digital Fund (WTGXX). This allows the tokenized fund to trade 24 hours a day, seven days a week. WisdomTree described this as “unprecedented” for a registered mutual fund.

The fund’s shares can now be settled instantly using blockchain technology. Stablecoins, including USDC and PYUSD, facilitate the conversion of WTGXX shares. The move is part of WisdomTree’s effort to bring blockchain efficiency to traditional financial products.

Broker-Dealer Approval and Liquidity

WisdomTree Securities received FINRA approval to expand broker-dealer activities. The firm can now trade WTGXX shares as a principal. This means it buys and sells fund shares directly from investors using its own balance sheet.

Will Peck, Head of Digital Assets at WisdomTree, said, “Instant settlement has been one of the true promises of blockchains and RWA tokenization.” The dealer-principal model ensures round-the-clock liquidity for investors.

Fund Mechanics and Dividend Tracking

WTGXX remains governed by the Investment Company Act of 1940. Investors continue to earn dividends as they hold the tokenized shares. Blockchain timestamps track ownership duration, allowing yield accrual even when shares move between wallets.

The fund invests mainly in short-term U.S. Treasuries and government securities. Its shares aim to trade at $1 like a stablecoin. The current fund value is $730 million, distributed across nine networks, including Ethereum and Solana, offering a 3.5% annualized yield.

Regulatory Coordination and Market Access

The SEC noted that granting exemptive relief is “appropriate in the public interest.” WisdomTree’s rollout required coordination across multiple regulatory approvals. It is one of the first U.S. mutual funds to combine on-chain settlement with traditional fund governance.

Jonathan Steinberg, CEO of WisdomTree, said the development shows “what were once emerging initiatives are now real businesses contributing to momentum today.” The firm has deployed tokenized assets totaling over $772 million across multiple blockchain networks.

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