Wall Street’s significant blockchain achievement: SEC approves WisdomTree for continuous, real-time trading.

This action boosts the momentum of the $10 billion tokenized Treasury market, spearheaded by BlackRock, Circle, and others.

Key Points:

• The Securities and Exchange Commission has authorized WisdomTree’s proposal to permit its Treasury Money Market Digital Fund (WTGXX) to trade at a stable $1 price during the day with a dealer, rather than solely based on the end-of-day net asset value.
• With the updated framework, a broker-dealer will execute trades from its own holdings continuously, utilizing instant blockchain settlement, while the mutual fund’s core structure and regulations remain unaffected.
• This development places WisdomTree within an expanding cohort of firms digitizing conventional assets such as U.S. Treasury money market funds, a market now surpassing $10 billion in tokenized Treasuries.

The U.S. Securities and Exchange Commission (SEC) has accepted a unique request from asset manager WisdomTree, enabling shares of its Treasury Money Market Digital Fund to trade at $1 with a dealer throughout the day, regardless of the fund’s end-of-day net asset value.

Previously, investors in the fund, which operates under the ticker WTGXX, were required to transact at the day’s end based on the fund’s NAV, as is customary for traditional mutual funds. The new arrangement facilitates trades around the clock through a broker-dealer acting as principal, with immediate settlement on blockchain infrastructure.

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WisdomTree indicated that the approval necessitated exemptive relief from the SEC and regulatory approval from FINRA to enhance the functions of its broker-dealer subsidiary. Under the revised model, trades are executed against the dealer’s inventory rather than directly with the fund, providing 24/7 liquidity while preserving the fund’s primary structure.

“This represents a genuine innovation and enhancement in the investor experience, showcasing how blockchain can serve as a new framework for capital markets,” stated Will Peck, WisdomTree’s head of digital assets, in a Tuesday announcement.

WisdomTree also launched continuous dividend accrual for the fund, distributing interest based on the duration each wallet held shares throughout the day. This feature monitors wallet activity onchain, ensuring that even transfers made mid-day do not forfeit any yield.

The company intends to first offer this functionality to institutions through its Connect platform, with potential retail access to follow via its Prime app.

This transition signifies a progression in the broader effort to tokenize segments of capital markets. Numerous large banks and asset managers have experimented with blockchain systems to issue and settle traditional assets, aiming to shorten settlement durations and minimize operational friction. Tokenization refers to the representation of financial instruments as digital tokens on a blockchain, facilitating ownership transfers in near real-time.

Money market funds that are supported by U.S. Treasuries have emerged as a significant test case. Over $10 billion worth of tokenized U.S. Treasuries are currently in circulation, according to data provider rwa.xyz.

Leading the way is BlackRock and Securitize’s BUIDL fund, which has over $2 billion in total value locked, a measure reflecting the dollar value of assets allocated to the product onchain. Additional offerings include products from stablecoin issuer Circle (CRCL) and Ondo Finance.

With the SEC’s endorsement, WisdomTree becomes part of a growing array of firms aiming to transition traditional cash management tools onto blockchain systems while adhering to the existing regulatory framework.