WisdomTree has received approval from the SEC to launch its tokenized Treasury money market fund, WTGXX, allowing 24/7 trading with instant settlement. This makes it the first mutual fund registered under the Investment Company Act of 1940 to operate with tokenized shares. By leveraging blockchain technology, the fund provides investors with more flexibility to trade U.S. Treasury-based assets outside traditional hours. As a result, it signals a major step forward in integrating blockchain with traditional finance.
With this approval, WisdomTree can offer continuous trading and T+0 settlement for WTGXX. Unlike traditional mutual funds that settle trades the next day (T+1), investors in this fund can now trade tokenized Treasury shares instantly at any time. This advancement improves liquidity and convenience, particularly for institutional investors who require access to cash-like assets at all hours. Moreover, it demonstrates how blockchain can modernize highly regulated financial products while still complying with existing rules.
WTGXX invests in short-term U.S. Treasuries while issuing tokenized shares that reflect ownership on a blockchain. Consequently, trades can settle immediately, and secondary market activity can happen outside normal business hours. This contrasts sharply with traditional money market funds, which typically require next-day settlement. Additionally, the WisdomTree fund’s structure may encourage more investors to consider tokenized TradFi products, bridging the gap between conventional finance and the digital asset ecosystem.
Although the SEC has approved WTGXX, tokenized assets remain under close regulatory scrutiny. Still, the decision opens a pathway for other fund managers to explore similar innovations. Crypto communities have responded positively, noting that WisdomTree’s move could accelerate mainstream adoption of blockchain in finance. In addition, analysts suggest that such developments could create competition among fund managers to offer more efficient and accessible products for both retail and institutional clients.
By combining regulatory compliance with blockchain technology, WisdomTree sets an example for the future of tokenized finance. Its WTGXX fund allows investors to access Treasury money markets around the clock, providing unprecedented flexibility. Furthermore, it highlights how traditional finance can adopt digital tools without compromising oversight. As blockchain continues to evolve, WisdomTree’s initiative may pave the way for a new era in tokenized, real-time financial instruments.
With this approval, investors can expect greater convenience, faster settlement, and increased opportunities for liquidity. As a result, WisdomTree is setting itself as a leader in the emerging space where blockchain meets traditional finance.
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