The U.S. Securities and Exchange Commission (SEC) has approved a special application from asset manager WisdomTree allowing shares of its Treasury Money Market Digital Fund to trade at $1 through a broker-dealer on an intraday basis, regardless of the fund’s end-of-day net asset value.
Until now, investors in the fund, which trades under the symbol WTGXX, had to make their trades at the end of the day at the fund’s net asset value, as is the norm for traditional mutual funds. The new structure allows transactions to take place 24 hours a day through a broker acting as principal, with instant settlement on blockchain rails.
WisdomTree said the approval required an exemption from the SEC and regulatory approval from FINRA to expand its brokerage subsidiary’s operations. Under the new model, trades occur against the broker’s inventory rather than directly with the fund, allowing for 24/7 liquidity while preserving the fund’s core structure.
“This is a true innovation and improvement to the investor experience, and demonstrates how blockchain can serve as a new set of rails for capital markets,” Will Peck, WisdomTree’s head of digital assets, said in a statement Tuesday.
WisdomTree also introduced continuous dividend accrual for the fund, awarding interest based on how long each portfolio held shares throughout the day. The feature tracks wallet activity on-chain, ensuring that even mid-day transfers do not miss out on a share of yield.
The company plans to make the feature available to institutions first through its Connect platform, with potential access to retailers later through its Prime app.
This change marks a step in the broader move to tokenize certain parts of the capital markets. Several large banks and asset managers have tested blockchain-based systems for issuing and settling traditional assets, with the aim of reducing settlement times and reducing operational friction. Tokenization refers to the representation of financial instruments as digital tokens on a blockchain, allowing ownership to evolve in near real time.
Money market funds backed by U.S. Treasuries have become a key test. According to data provider rwa.xyz, more than $10 billion in tokenized U.S. Treasuries are now in circulation.
At the forefront is BlackRock and Securitize’s BUIDL fund, which holds more than $2 billion in total value locked, a metric that reflects the dollar value of assets committed to the on-chain product. Other offerings include products from stablecoin issuer Circle (CRCL) and Ondo Finance.
With SEC approval, WisdomTree joins a growing group of companies seeking to integrate traditional treasury management tools on blockchain infrastructure while remaining within the existing regulatory framework.
