WisdomTree Introduces Continuous‑Trading and Instant Settlement for Its Tokenised Treasury Money‑Market Fund
New York, Feb 24 2026 – U.S. asset manager WisdomTree has announced that its Treasury Money‑Market Digital Fund (ticker WTGXX) will now be tradable around the clock with instant settlement. The move marks the first instance of a registered, tokenised mutual‑fund share being allowed to clear and settle 24 hours a day under the Investment Company Act of 1940, using a dealer‑principal model.
How the service works
- Dealer‑principal framework – WisdomTree Securities, the firm’s broker‑dealer arm, received approval from the Financial Industry Regulatory Authority (FINRA) to act as a principal in the secondary market for the fund’s tokenised shares. The United States Securities and Exchange Commission (SEC) granted the necessary exemptive relief for the new trading model.
- Instant settlement via USDC – Transactions are settled in the stablecoin USDC, enabling real‑time transfer of ownership without the lag typical of traditional settlement cycles.
- Liquidity source – Rather than routing trades through an exchange, liquidity will be supplied from the broker‑dealer’s own balance‑sheet capacity. The fund’s primary creation and redemption mechanisms remain unchanged.
- Institutional rollout – The continuous‑trading feature is initially being offered through WisdomTree Connect, a platform aimed at institutional investors.
The fund continues to invest in short‑term U.S. Treasury securities with the objective of maintaining a net asset value of $1 per share, though it is not backed by any government guarantee.
Context: Tokenised Money‑Market Funds on the rise
Tokenised money‑market funds (MMFs) have grown rapidly in the past two years. The Bank for International Settlements (BIS) recently classified them as an emerging on‑chain yield product, estimating that total assets under management have surged to almost $9 billion — up from roughly $770 million at the close of 2023.
Leading the sector, BlackRock’s USD Institutional Digital Liquidity Fund commands about $2.2 billion, followed by Franklin Templeton’s OnChain U.S. Government Money Fund with roughly $900 million. WisdomTree’s Government Money‑Market Digital Fund now sits in third place, managing close to $730 million, a significant jump from the $112 million it held a year ago.
The expansion has been propelled by regulatory developments such as the July 2025 GENIUS Act, which barred interest‑bearing stablecoins in the United States. With stablecoins constrained, tokenised MMFs have become one of the few regulated, yield‑producing cash‑equivalent products available on public blockchains.
Analyst perspective
- Liquidity and price discovery – By allowing continuous trading and instant settlement, WisdomTree may tighten bid‑ask spreads and improve price discovery for tokenised MMF shares, a benefit that could attract additional institutional capital.
- Regulatory precedent – The SEC’s grant of exemptive relief and FINRA’s approval of a principal‑dealer model could serve as a template for other asset managers seeking to introduce on‑chain secondary markets for registered funds.
- Competitive pressure – As BlackRock, Franklin Templeton, and now WisdomTree scale their tokenised MMF offerings, competition for institutional liquidity could intensify, potentially driving innovation in settlement assets (beyond USDC) and trade‑execution infrastructure.
- Risk considerations – Although the fund’s NAV aims to stay at $1, tokenised MMFs remain subject to credit and interest‑rate risk inherent in short‑term Treasury holdings. Moreover, settlement in a stablecoin adds a layer of counter‑party and custodial risk that investors will need to assess.
Key takeaways
- First 24/7 tokenised mutual‑fund – WisdomTree’s WTGXX becomes the inaugural registered fund to trade and settle continuously under U.S. securities law.
- Instant settlement via USDC – The use of a stablecoin eliminates the traditional T+2 settlement lag, offering investors real‑time exposure to Treasury yields.
- Institutional‑focused launch – Access begins with WisdomTree Connect, signalling a strategic emphasis on sophisticated investors rather than retail users.
- Sector momentum – The move reflects broader growth in tokenised money‑market products, which have expanded to nearly $9 billion in assets in just over two years.
- Regulatory blueprint – The SEC and FINRA approvals could pave the way for similar initiatives by other fund sponsors, potentially reshaping how cash‑equivalent assets are traded on blockchain networks.
As the tokenised money‑market space continues to mature, WisdomTree’s 24/7 trading model may become a benchmark for future on‑chain financial products, blending traditional fund regulation with the efficiencies of blockchain settlement.
Source: https://cointelegraph.com/news/sec-grants-relief-for-24-7-trading-of-wisdomtree-s-tokenized-money-market-fund?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
