Bitaigen Research 
Under the United States regulatory framework, Wisdom Tree has secured a special exemption from the SEC, enabling the first tokenized U.S. Treasury‑backed money‑market fund to trade on a secondary market 24 hours a day with instant settlement. This approval marks a milestone: a registered tokenized mutual fund operating under the dealer‑broker model mandated by the 1940 Investment Company Act can now be bought and sold around the clock, with fund shares delivering ownership of short‑term U.S. Treasury exposure the instant a trade clears.
Trading and Settlement Mechanism
Wisdom Tree obtained the SEC exemption through its subsidiary, and its proprietary brokerage arm, Wisdom Tree Securities, has also received FINRA clearance. This permits the firm to execute buy‑sell orders for the fund’s shares within its own dealer‑market account. Liquidity does not rely on a public exchange; instead, it is supplied from the broker‑dealer’s inventory, and the amount available for trading is limited by the firm’s balance‑sheet capacity. The primary issuance and redemption processes of the fund remain unchanged; the only addition is a continuous, 24‑hour secondary‑market trading channel.
Product Features
- Fund name: Wisdom Tree Treasury Money‑Market Digital Fund (WTGXX)
- Investment target: Short‑term U.S. Treasury securities, with a target net asset value (NAV) of $1.00 per share.
- Settlement asset: USDC is used as the settlement currency for round‑the‑clock trading.
- Dividend mechanism: Accessible to institutional clients via Wisdom Tree Connect, the fund accrues dividends continuously. Earnings are allocated daily based on the length of time tokens are held in a verified wallet, and interest accrues even during intra‑day transfers.
It is important to note that WTGXX is not insured or guaranteed by any government agency.
In this article we dissect how Wisdom Tree, after obtaining a special SEC exemption, implements 24/7 secondary‑market trading and real‑time settlement for a tokenized money‑market fund. We explain the regulatory innovation, the trading architecture, and the potential impact on investor liquidity, helping readers grasp this landmark industry transformation. Please continue reading for a deeper dive.
*Note: U.S. residents should conduct crypto transactions on Binance.US or another SEC‑registered platform. Fiat deposits can be made in USD via SEPA or SWIFT where supported. Crypto gains may be taxable under the taxpayer’s local jurisdiction.*
Rapid Expansion of Tokenized Money‑Market Funds
Traditional money‑market funds pool cash and invest it in short‑term, high‑credit‑quality debt instruments to preserve capital while delivering modest returns. In recent years, asset managers have begun issuing fund shares on blockchain, creating tokenized versions that bring transparency and programmability to cash‑like products.
The Bank for International Settlements (BIS) defined tokenized money‑market funds as an emerging class of on‑chain yield products in its November 26 report, estimating that total assets have surged from $770 million at the end of 2023 to nearly $9 billion. This growth is driven primarily by large global asset‑management firms. According to data from RWA.xyz:
- BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) tops the list with roughly $2.17 billion in assets.
- Franklin Templeton’s on‑chain U.S. Government Money Market Fund (FOBXX) holds about $901 million.
- Wisdom Tree’s government money‑market digital fund ranks second, with assets around $730 million.
Tokenized U.S. Treasuries. Source: RWA.xyz
Compared with figures from a year earlier, the scale increase is striking. In February 2025, BlackRock’s comparable fund held about $642 million, Franklin Templeton about $617 million, while Wisdom Tree’s assets were only $112 million at that time.
This expansion aligns with the passage of the GENIUS Act in July 2025, which prohibited the issuance of interest‑bearing stablecoins in the United States. Consequently, tokenized money‑market funds have become one of the few regulated, yield‑producing cash alternatives available on public blockchains. At the same time, Congress is debating the Clarity Act, which continues to grapple with how stable‑coin earnings should be regulated—a core point of contention between DeFi platforms and traditional banking institutions.
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The points above capture the core highlights of Wisdom Tree’s SEC approval and the ushering in of a 24/7 trading era for tokenized money‑market funds. For a more detailed analysis of the approval and the mechanics of tokenized fund trading, please follow the coverage from Bitaigen.
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