WisdomTree gets SEC approval for round-the-clock trading of tokenized MMF

WisdomTree gets SEC approval for round-the-clock trading of tokenized MMF

The approval allows WisdomTree’s tokenized Treasury money market fund to trade and settle around the clock within the US regulatory framework.

US-based asset manager WisdomTree has launched 24/7 trading and instant settlement for the WisdomTree Treasury Money Market Digital Fund (WTGXX), enabling round-the-clock secondary trading of a registered tokenized mutual fund within the US regulatory framework.

The company said it is 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 using a dealer-principal model. The structure allows shares to settle instantly, giving investors real-time access to yield-bearing US Treasurys exposure.

To implement the model, WisdomTree entities obtained exemptive relief from the US Securities and Exchange Commission (SEC). Its affiliated broker-dealer, WisdomTree Securities, also received approval from the Financial Industry Regulatory Authority (FINRA), which oversees US broker-dealers, to conduct principal trading in the fund’s shares.

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