WisdomTree Receives SEC Exemptive Relief for 24/7 Trading of Tokenized Money Market Fund Shares

WisdomTree, Inc. (NYSE: WT) has obtained regulatory approvals from the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) to launch 24/7 trading and instant settlement capabilities for its WisdomTree Treasury Money Market Digital Fund (WTGXX) , marking the first time a registered tokenized mutual fund governed by the Investment Company Act of 1940 has been permitted to trade continuously within the U.S. regulatory perimeter.

The structural innovation, enabled by SEC exemptive relief and FINRA approval for WisdomTree Securities to conduct principal trading of registered fund shares, allows investors to buy and sell fund shares at a constant $1 price around the clock with settlement facilitated by stablecoins, effective immediately.

The development represents a fundamental shift from traditional mutual fund operations, which restrict transactions to once daily at net asset value (NAV) with T+1 settlement delays, and establishes a new regulatory framework for tokenized asset trading through a dealer-principal liquidity model rather than exchange-based execution.

Regulatory Approvals and Structural Framework

WisdomTree secured coordinated regulatory approvals enabling this functionality. Multiple WisdomTree entities obtained exemptive relief from the SEC, permitting transactions to occur outside conventional mutual fund redemption processes. Separately, WisdomTree Securities, Inc. , a broker-dealer subsidiary, received FINRA approval to expand its activities to include principal trading of registered fund shares, allowing the firm to buy and sell WTGXX shares directly from and to investors using its own balance sheet.

This dealer-principal structure enables 24/7 execution while preserving the fund’s existing primary-market operations. Transactions settle through bilateral agreements with WisdomTree Securities acting as principal up to its balance sheet capacity, rather than through exchanges or alternative trading venues. The initial participating broker-dealer is WisdomTree Securities, though unaffiliated broker-dealers may participate in the future subject to applicable conditions.

The structural innovation via regulatory relief has been characterized as unprecedented since the introduction of exchange-traded funds, establishing a framework for continuous trading of registered fund shares that operates within existing securities laws through exemptive relief rather than new rulemaking.

Trading Mechanics and Settlement Infrastructure

Investors can now trade WTGXX shares 24 hours per day, seven days per week, at a constant $1 price regardless of the fund’s end-of-day net asset value. This breaks the traditional mutual fund model constraint of single daily pricing and settlement at NAV, enabling real-time position adjustments.

Settlement occurs instantly on blockchain rails, facilitated by stablecoins. USD Coin (USDC) , issued by Circle, will initially serve as the available stablecoin for these transactions, with settlement times reduced from the conventional T+1 standard to immediate finality. WisdomTree’s stablecoin conversion service also supports additional stablecoins including PayPal USD (PYUSD).

The instant settlement capability eliminates the cash drag associated with traditional market delays, allowing investors to maintain continuous exposure to yield-bearing assets. This functionality addresses a core limitation of conventional money market fund operations, where funds remain uninvested during settlement periods.

Continuous Dividend Accrual Mechanism

In conjunction with 24/7 trading capabilities, WisdomTree has implemented continuous dividend accrual for WTGXX shares. This mechanism allocates each day’s income based on the duration individual verified wallets held tokens, utilizing blockchain timestamps to track intraday transfers.

The system enables shareholders conducting peer-to-peer transfers to receive their proportionate share of daily interest, even when tokens move between wallets during the trading day. This represents an enhancement to traditional dividend distribution models, which calculate accruals based on end-of-day positions regardless of intraday ownership changes.

When paired with 24/7 trading and settlement, continuous dividend accrual preserves the fund’s underlying investment process while enabling sophisticated treasury management operations and intraday cash positioning.

Market Context and Tokenized Asset Growth

The WisdomTree Treasury Money Market Digital Fund holds approximately $730 million in assets under management, investing primarily in short-term U.S. Treasury obligations and other government securities. The fund joins WisdomTree’s broader tokenized asset suite, which represents over $772 million across multi-chain deployments, including the January 2026 launch of its full fund suite on the Solana blockchain.

The broader tokenized real-world asset market currently stands at approximately $25 billion, according to industry data, representing a fraction of the trillions in mutual funds and exchange-traded products. The stablecoin payment market doubled to approximately $400 billion in 2025, with significant business-to-business adoption driving infrastructure development.

WisdomTree projects that WTGXX could become one of the firm’s largest funds, potentially rivaling the $16 billion WisdomTree Floating Rate Treasury Fund (USFR) , as institutional and crypto-native investors adopt the 24/7 trading functionality for treasury management and collateral optimization.

Regulatory Environment and Industry Implications

The approvals follow the enactment of the GENIUS Act in July 2025, which established the first comprehensive federal framework for payment stablecoin issuers in the United States. WisdomTree’s engagement with SEC and FINRA reflects what the company describes as constructive regulatory dialogue under the current administration.

Industry observers note that the exemptive relief establishes a proof of concept for instant settlement of money market funds, with broader implications for eliminating settlement risk and counterparty exposure inherent in traditional T+1 and T+2 settlement cycles. The structure enables greater capital efficiency and improved collateral optimization for institutional investors.

Questions remain regarding how liquidity will hold during periods of market stress, which market participants will provide off-hours pricing, and whether the SEC will extend similar relief to larger issuers or codify the framework through formal rulemaking. However, the approval demonstrates regulatory willingness to accommodate blockchain-based innovations within existing securities law frameworks.

Future Expansion Plans

The 24/7 trading and instant settlement functionality will initially be available to institutional investors via WisdomTree Connect™ , the firm’s institutional digital assets platform. Combined with existing peer-to-peer transfer capabilities, WisdomTree Connect enables frictionless value movement for WTGXX across wallets, accounts, and counterparties.

WisdomTree indicates that this functionality may become available to retail investors in the future through WisdomTree Prime® and other distribution channels. The company is also exploring tokenization of exchange-traded funds and expansion of its tokenized asset offerings across additional blockchain networks.

Frequently Asked Questions

What regulatory approvals did WisdomTree receive for 24/7 trading?

WisdomTree obtained SEC exemptive relief allowing transactions in its tokenized money market fund shares outside traditional mutual fund redemption processes, and FINRA approved WisdomTree Securities to expand its broker-dealer activities to include principal trading of registered fund shares. These coordinated approvals enable the dealer-principal liquidity model supporting 24/7 trading.

How does 24/7 trading of a registered mutual fund work?

Unlike traditional mutual funds that price and trade once daily at net asset value, WisdomTree’s WTGXX shares trade at a constant $1 price around the clock through bilateral transactions with WisdomTree Securities acting as principal. The broker-dealer uses its own balance sheet to buy and sell shares directly with investors, with settlement occurring instantly on blockchain rails using stablecoins.

What is continuous dividend accrual and why does it matter?

Continuous dividend accrual allocates daily income based on the exact duration each wallet holds WTGXX tokens, using blockchain timestamps to track intraday transfers. This ensures shareholders receive their proportionate share of daily interest even when tokens move between wallets during the trading day, enabling sophisticated treasury management and maintaining yield continuity with 24/7 trading capabilities.

What stablecoins are used for settlement of these transactions?

USD Coin (USDC) will initially serve as the available stablecoin for settling WTGXX trades. WisdomTree’s stablecoin conversion service also supports additional stablecoins including PayPal USD (PYUSD), with settlement occurring instantly on blockchain infrastructure rather than traditional payment rails.

How does this differ from traditional money market fund operations?

Traditional money market funds restrict trading to once daily at NAV with T+1 settlement delays, leaving funds uninvested during settlement periods. WisdomTree’s structure enables continuous trading at constant $1 price with instant settlement, eliminating cash drag and enabling real-time position adjustments while maintaining regulatory compliance under the Investment Company Act of 1940 through exemptive relief.