The U.S. Securities and Exchange Commission (SEC) has greenlit a special request from asset manager WisdomTree, allowing shares of its Treasury Money Market Digital Fund (ticker: WTGXX) to trade at $1 with a dealer on an intraday basis. Unlike traditional mutual funds that restrict transactions to end-of-day net asset value (NAV) pricing, the new structure enables around-the-clock trading with instant settlement on blockchain rails.
Previously, investors could only buy or sell at the daily NAV after market close. WisdomTree's model shifts the counterparty from the fund itself to a broker-dealer acting as principal, maintaining the fund's primary structure while offering continuous liquidity.
Exemptive Relief and Dealer Model
WisdomTree said the approval required exemptive relief from the SEC and regulatory clearance from FINRA to expand its broker-dealer subsidiary's activities. Under this model, trades are executed against the dealer's inventory rather than directly with the fund. "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," said Will Peck, WisdomTree's head of digital assets.
Onchain Dividend Accrual
WisdomTree also introduced continuous dividend accrual for the fund. Interest is allocated proportionally based on how long each wallet held shares during the day, with wallet activity tracked onchain. This ensures even mid-day transfers do not forfeit a share of the yield.
Institutions First, Retail Later
The firm plans to first make the functionality available to institutions via its Connect platform, with potential retail access later through its Prime app.
The move is part of a broader push to tokenize parts of capital markets. Large banks and asset managers have piloted blockchain-based systems for issuing and settling traditional assets, aiming to cut settlement times and reduce operational friction. Tokenization refers to representing financial instruments as digital tokens on a blockchain, enabling near real-time ownership transfer.
Money market funds backed by U.S. Treasuries have become a key test case. According to data provider rwa.xyz, over $10 billion in tokenized U.S. Treasuries are now in circulation.
Leading the pack is BlackRock and Securitize's BUIDL fund, which holds over $2 billion in total value locked (TVL), a metric reflecting the dollar value of assets committed to the product onchain. Other offerings include products from stablecoin issuer Circle (CRCL) and Ondo Finance.
With the SEC's green light, WisdomTree joins a growing group of firms seeking to bring traditional cash management tools onto blockchain infrastructure while staying within the existing regulatory framework.