In a landmark move for digital assets, WisdomTree has secured SEC approval for a tokenized mutual fund that brings 24/7 access to U.S. Treasury markets.
Summary
SEC approval for WTGXX and 24/7 trading
WisdomTree has received approval from the SEC to launch its tokenized Treasury money market fund, WTGXX, enabling 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 lets investors trade U.S. Treasury-based assets outside traditional market hours.
As a result, the launch marks a significant step forward in integrating digital ledgers with traditional finance structures. Moreover, it shows regulators are willing to accommodate new formats when they fit within existing legal frameworks.
How 24/7 money market trading works
With this approval, WisdomTree can offer continuous trading and T+0 settlement for WTGXX. Unlike conventional mutual funds that typically settle trades the next day (T+1), investors in this vehicle can trade tokenized Treasury shares instantly at any time. That said, standard compliance rules on investor protection and disclosure still apply.
This advancement improves liquidity and convenience, particularly for institutional investors that require access to cash-like assets around the clock. Moreover, it illustrates how real time settlement models can be layered onto familiar fund structures without dismantling the regulatory regime.
Fund structure, tokenization and market impact
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 occur outside standard business hours. This stands in sharp contrast to traditional money market funds, which usually require next-day settlement and rely on legacy transfer systems.
Furthermore, the fund’s design could encourage more investors to consider a tokenized mutual fund model as a practical way to bridge conventional finance and the digital asset ecosystem. By keeping familiar assets but modernizing market infrastructure, WisdomTree is testing how far tokenization can go inside the tightly regulated money market space.
Regulatory landscape and industry response
Although the SEC has approved WTGXX, tokenized assets remain under close regulatory scrutiny in the United States. However, this decision opens a path for other fund managers to explore similar tokenized products while staying inside existing rules. It also signals that highly regulated structures can adopt blockchain rails without abandoning oversight.
Crypto communities have reacted positively, noting that WisdomTree‘s move could accelerate mainstream adoption of blockchain in finance. In addition, analysts suggest this kind of innovation may spark competition among fund managers to deliver more efficient and accessible products for both retail and institutional clients, including those seeking improved institutional cash access.
TradFi meets blockchain in Treasury markets
By combining regulatory compliance with token-based infrastructure, WisdomTree offers a live example of blockchain tradfi integration. Its WTGXX fund gives investors access to Treasury money markets around the clock, offering new flexibility for managing liquidity and cash reserves. Moreover, it demonstrates that existing investor protections can coexist with programmable, on-chain representations of fund shares.
As blockchain technology continues to evolve, WisdomTree’s initiative may pave the way for a broader class of regulated tokenized assets. The ability to operate with T+0 settlement and continuous trading could eventually influence how other segments of fixed income, equities, and alternative assets are structured and distributed.
Outlook for tokenized Treasury money markets
The WTGXX launch highlights how tokenization can modernize a treasury money market fund without changing its underlying asset base. However, future growth will depend on how regulators, custodians, and market infrastructure providers respond to the model in practice. If adoption grows, more managers could experiment with similar structures tied to government securities and other short-duration instruments.
With this approval, investors can expect greater convenience, faster settlement, and expanded liquidity options. In conclusion, WisdomTree is positioning itself as an early leader at the intersection where blockchain technologies meet traditional finance, using 24/7 tokenized Treasury access as a proving ground for real-time, compliant financial instruments.
