SEC Approves WisdomTree’s Instant-Settlement Tokenized Money Market Fund

WisdomTree announced on Tuesday that it is enabling instant settlement for its tokenized Treasury Money Market Digital Fund (WTGXX), signaling a shift away from traditional market settlement constraints.

The fund, part of WisdomTree’s $168 billion in assets under management, aims to reduce “cash drag” associated with delayed settlement in conventional markets while leveraging the efficiency of digital asset infrastructure.

SEC Grants Exemptive Relief for Intra-Day Trading

The arrangement required exemptive relief from the U.S. Securities and Exchange Commission, which approved intraday trading of WTGXX shares at $1 regardless of net asset value. Historically, money market funds calculate net asset value at the end of each trading day.

Brian Daly, SEC director of the division of investment management, emphasized that the relief balances innovation with investor protection: “This relief preserves the protections of a regulated money market fund while permitting retail investors intra-day liquidity.”

The approval allows WTGXX to function as digital cash that can be traded, moved, or spent instantly, extending the traditional money market fund model onto blockchain rails.

Round-the-Clock Trading and Dividend Accrual

WisdomTree’s broker-dealer subsidiary received FINRA approval for principal trading of WTGXX shares, enabling 24/7 liquidity across multiple networks, including Ethereum and Solana.

The fund supports ongoing dividend accrual using blockchain timestamps, allowing shareholders to earn yield even as tokens transfer between wallets. WTGXX, backed by U.S. Treasuries, targets a stable value of $1 and currently offers an annualized yield of 3.5%, with a total issuance of $730 million across nine networks.

SEC Comfort With Blockchain-Based Financial Products

The SEC described the relief as “appropriate in the public interest,” reflecting growing regulatory comfort with tokenized financial products. In July, SEC Chair Paul Atkins highlighted Project Crypto, the agency’s initiative to modernize securities rules for on-chain markets.

Will Peck, Head of Digital Assets at WisdomTree, noted that regulatory approvals are laying the groundwork for mainstream adoption: “This is a true innovation and improvement in the investor experience, and it demonstrates how blockchain can serve as a new set of rails for capital markets.”