SEC Greenlights 24/7 Trading for WisdomTree's Tokenized Money Market Fund
WisdomTree receives regulatory approval to offer continuous trading and settlement for its blockchain-based Treasury money market fund, operating within established US securities regulations.
Asset management firm WisdomTree, headquartered in the United States, has introduced continuous 24/7 trading along with immediate settlement capabilities for its WisdomTree Treasury Money Market Digital Fund (WTGXX), marking a milestone that permits non-stop secondary market trading of a registered tokenized mutual fund operating under US regulatory standards.
According to the firm, this represents the initial instance where a registered tokenized mutual fund has received authorization to facilitate continuous trading and settlement operations under the Investment Company Act of 1940 through utilization of a dealer-principal framework. This architectural approach enables fund shares to achieve instantaneous settlement, providing investors with immediate access to yield-generating exposure linked to US Treasury securities.
For the purpose of executing this model, various WisdomTree entities secured exemptive relief from the United States Securities and Exchange Commission (SEC). Additionally, the company's affiliated broker-dealer entity, WisdomTree Securities, obtained authorization from the Financial Industry Regulatory Authority (FINRA), the regulatory body that supervises US broker-dealers, to engage in principal trading activities involving the fund's shares.
The provision of liquidity will occur through broker-dealer inventory holdings rather than through traditional exchange mechanisms, with trade execution dependent upon the broker's balance sheet availability while the fund's core issuance and redemption procedures remain unaltered.
Access to this functionality will initially be limited to institutional market participants via WisdomTree Connect, with USDC (USDC) functioning as the settlement instrument for continuous 24/7 transaction processing. Additionally, WisdomTree has implemented continuous dividend accrual mechanisms, distributing daily earnings proportional to token holding duration in verified digital wallets, including throughout intraday transfer periods.
WTGXX directs investments toward short-duration US Treasury securities and aims to preserve a $1 net asset value, although it does not carry insurance or guarantees from any governmental agency.
Tokenized money market funds see big growth
A money market fund aggregates investor capital into short-duration, high-grade debt instruments to maintain capital preservation while delivering moderate returns. Over recent years, asset management companies have started launching tokenized alternatives that register fund ownership shares on blockchain infrastructure, effectively bringing conventional cash management products into the onchain environment.
This market segment has experienced dramatic expansion. On Nov. 26, the Bank for International Settlements characterized tokenized money market funds as an emerging category of onchain yield-generating products, projecting that total assets had surged to approximately $9 billion from around $770 million recorded at the conclusion of 2023.
This explosive growth has been driven by several of the planet's largest asset management firms. Based on data from RWA.xyz, BlackRock's USD Institutional Digital Liquidity Fund (BUIDL) presently holds the position as the largest tokenized money market fund with approximately $2.17 billion in total assets, with Franklin Templeton's OnChain U.S. Government Money Fund (FOBXX) following at around $901 million.
WisdomTree's Government Money Market Digital Fund occupies the subsequent position with roughly $730 million.
This expansion represents a dramatic escalation compared to the previous year. During February 2025, BlackRock's fund contained approximately $642 million, Franklin Templeton oversaw around $617 million and WisdomTree possessed merely $112 million.
This market expansion has occurred following the enactment of the GENIUS Act in July 2025, legislation that prohibited interest-bearing stablecoins within the United States, thereby establishing tokenized money market funds as among the limited number of regulated, yield-producing cash alternatives accessible on public blockchain networks.
Congressional legislators are currently engaged in deliberations regarding the CLARITY Act in Congress, where the regulatory treatment of stablecoin yield continues to represent a critical point of disagreement between DeFI and traditional banking industry stakeholders.