WisdomTree, a leading US-based asset manager, has revolutionized the financial landscape by launching 24/7 trading and instant settlement for its WisdomTree Treasury Money Market Digital Fund (WTGXX). This groundbreaking move marks the first time a registered tokenized mutual fund has been allowed to trade and settle around the clock under the Investment Company Act of 1940.
Breaking the Mold with Continuous Trading
WisdomTree achieved this milestone through a dealer-principal model, which received exemptive relief from the US Securities and Exchange Commission (SEC) and approval from the Financial Industry Regulatory Authority (FINRA). The model allows shares to settle instantly, providing investors with real-time access to yield-bearing US Treasurys exposure.
A New Paradigm in Liquidity
Unlike traditional exchange-based trading, liquidity for WTGXX will be provided through broker-dealer inventory, subject to the broker’s balance sheet capacity. This innovative approach ensures that the fund’s primary issuance and redemption process remains unchanged, while offering institutional users continuous access through WisdomTree Connect.
Enhanced Features for Token Holders
WTGXX also introduces continuous dividend accrual, a feature that allocates daily income based on the duration tokens are held in verified wallets, including during intraday transfers. The fund invests in short-term US Treasurys and aims to maintain a $1 net asset value, though it is not insured or guaranteed by any government agency.
The Rise of Tokenized MMFs
Tokenized money market funds have seen explosive growth in recent years, driven by the convergence of traditional finance and blockchain technology. According to the Bank for International Settlements, assets in these funds have surged to nearly $9 billion from around $770 million at the end of 2023. BlackRock, Franklin Templeton, and WisdomTree are leading the charge, with their respective funds managing billions in assets.
Regulatory Tailwinds
This growth has been bolstered by the GENIUS Act, passed in July 2025, which prohibited interest-bearing stablecoins in the US, positioning tokenized money market funds as a regulated, yield-generating alternative on public blockchains. The ongoing debate over the CLARITY Act, which addresses the treatment of stablecoin yield, further highlights the evolving regulatory landscape.
Looking Forward
WisdomTree’s 24/7 trading model for WTGXX represents a significant step forward in the integration of blockchain technology with traditional financial products. As the sector continues to mature, the potential for tokenized MMFs to offer greater liquidity and accessibility to a broader range of investors is becoming increasingly clear. With regulatory frameworks evolving to support these innovations, the future of tokenized finance looks bright.
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