WisdomTree has secured regulatory approval to enable 24/7 trading and instant settlement for its WisdomTree Treasury Money Market Digital Fund (WTGXX), marking the first registered tokenised mutual fund to operate around the clock under the Investment Company Act of 1940.
The structure, which uses a dealer-principal model, allows shares to settle instantly and provides real-time exposure to yield-bearing US Treasurys, with exemptive relief granted by the US Securities and Exchange Commission and principal trading approval for WisdomTree Securities from Financial Industry Regulatory Authority.
Liquidity will be provided through broker-dealer inventory rather than an exchange, while primary issuance and redemption remain unchanged, and the service will initially be available to institutional users via WisdomTree Connect with USD Coin used as the 24/7 settlement asset.
WTGXX invests in short-term US Treasurys and seeks to maintain a $1 net asset value without government insurance, and WisdomTree has introduced continuous dividend accrual that allocates income daily based on how long tokens are held in verified wallets.
Tokenised money market funds have grown rapidly, with the Bank for International Settlements estimating assets reached nearly $9 billion in November from about $770 million at the end of 2023 as traditional cash products migrate onchain.
According to RWA.xyz data, BlackRock’s USD Institutional Digital Liquidity Fund leads the sector with about $2.17 billion in assets, followed by Franklin Templeton’s OnChain U.S. Government Money Fund at roughly $901 million, while WisdomTree’s fund has grown to approximately $730 million amid debate over the GENIUS Act and the proposed CLARITY Act in Congress.