The U.S. Securities and Exchange Commission (SEC) has approved WisdomTree’s application to allow for 24/7 trading and instant settlement of tokenized shares in its Treasury Money Market Digital Fund (WTGXX), a first for a U.S. Mutual fund. The approval, granted on February 23, 2026, enables intraday trading at a fixed $1.00 price, departing from standard mutual fund practices that require transactions to occur at the next calculated net asset value.
The move, facilitated by a dealer-principal model and blockchain timestamps, is expected to significantly enhance liquidity and efficiency for investors, according to a statement released by WisdomTree. The SEC granted exemptive relief to multiple WisdomTree entities, while the Financial Industry Regulatory Authority (FINRA) approved its broker-dealer unit to act as principal for trades. This coordinated regulatory endorsement is being described as the most significant structural innovation for funds since the introduction of exchange-traded funds (ETFs).
WisdomTree’s Treasury Money Market Digital Fund invests in short-term Treasury and government securities, targeting a stable net asset value of one dollar. The tokenized shares are issued on a blockchain, allowing for digital recording and transfer of ownership, eliminating traditional settlement delays. Investors can now buy and sell shares throughout the trading day, with transactions settled using the USDC stablecoin.
The SEC’s approval follows an application filed by WisdomTree Digital Trust and its affiliated entities. According to the SEC’s Division of Investment Management, the exemption permits investors to trade money market fund shares with a dealer on an intraday basis at a constant price. This decision signals a regulatory endorsement of blockchain infrastructure and its potential to reshape financial markets.
Market observers are tracking the scalability of this recent model, as well as broader regulatory adoption trends and potential impacts on yield strategies and cash management. The approval is seen as a test case for how blockchain technology could be integrated into other areas of the financial industry, potentially impacting fund access and settlement processes. Simply Wall St. Reports that the SEC granted WisdomTree a “one-off exemption” to allow the intraday trading.
According to NS3.AI, the SEC’s decision represents a significant step in the expansion of the $10 billion tokenized Treasury market, currently dominated by BlackRock and Circle. The SEC has not yet indicated whether the exemption will be extended to other eligible funds under WisdomTree Digital Trust.
