WisdomTree To Launch 24/7 Trading and Instant Settlement for Tokenized Money Market Fund Shares

Business Wire

Exemptive relief granted by SEC unlocks secondary market liquidity for registered tokenized fund shares for the first time under the Investment Company Act of 1940, enabling 24/7 trading against USDC by WisdomTree’s affiliated broker-dealer

NEW YORK--(BUSINESS WIRE)--
WisdomTree, Inc. (NYSE: WT) (“WisdomTree”), a global financial innovator, today announced the launch of 24/7 trading and instant settlement capabilities for the WisdomTree Treasury Money Market Digital Fund (WTGXX). This marks the first time registered tokenized mutual fund shares have been permitted to trade and instantly settle 24/7 within the U.S. regulatory perimeter via a dealer-principal liquidity model.

This capability is unprecedented for a fund governed by the Investment Company Act of 1940, representing a key advancement in tokenized security markets compared to traditional markets. Instant settlement lets investors move into yield-bearing assets in real time, eliminating T+1 delays of traditional markets, reducing cash drag and unlocking the efficiency and liquidity advantages of tokenized assets.

Launching this functionality required coordinated regulatory approvals, with multiple WisdomTree entities obtaining SEC exemptive relief. This structural innovation via regulatory relief has not been seen since the introduction of ETFs. Separately, WisdomTree Securities, Inc. (“WisdomTree Securities”), a broker-dealer subsidiary of WisdomTree, received FINRA approval to expand its broker-dealer activities to include principal trading of registered fund shares, initially enabling 24/7 liquidity in tokenized money market fund shares with settlement facilitated by stablecoins.

“Instant settlement has been one of the true promises of blockchains and RWA tokenization,” said Will Peck, Head of Digital Assets at WisdomTree. “We’re grateful for the constructive engagement with the SEC and FINRA, including the grant of exemptive relief and regulatory approvals necessary to bring this innovation to market. This is a true innovation and improvement in the investor experience, and it demonstrates how blockchain can serve as a new set of rails for capital markets. We’re thrilled to bring this feature forward for our tokenized money market fund.”

This functionality will soon be made available to institutional investors via WisdomTree Connect^™. WTGXX has already been driving yield and diversification for investors, enabling more efficient onchain treasury operations for crypto-native institutions. The fund has played a critical role in eliminating the need to go offchain to access yield-bearing investments. With this launch and combined with existing peer-to-peer transfer capabilities, WisdomTree Connect will enable frictionless 24/7 trading and value movement for WTGXX across wallets, accounts, and counterparties. In the future, this functionality may be available to retail investors via WisdomTree Prime^® and other channels.

These approvals allow transactions to settle from broker-dealer inventory rather than directly with the fund, enabling 24/7 execution while preserving the fund’s existing primary-market structure. The initial participating broker-dealer will be WisdomTree Securities, but over time broker-dealers unaffiliated with WisdomTree may also participate, subject to applicable conditions. Trading occurs through bilateral transactions with WisdomTree Securities acting as principal up to its balance sheet capacity, rather than through an exchange or trading venue.

In tandem, WisdomTree has also unveiled continuous dividend accrual, enabling WTGXX shares to allocate each day’s income based on how long each verified wallet held its tokens, using blockchain timestamps to track intraday transfers. This enables shareholders that conduct peer-to-peer transfers to receive their proportionate share of daily interest, even when tokens move between wallets during the day. Paired with 24/7 trading and settlement, continuous dividend accrual enhances intraday functionality while preserving WTGXX’s underlying investment process. Once launched, WisdomTree Securities will provide this dealer-based liquidity source for institutional customers of WisdomTree Connect. USDC will initially be the available stablecoin for these trades.

Read more about the WisdomTree Treasury Money Market Digital Fund here.

For more information about WisdomTree Connect, please visit: https://www.wisdomtreeconnect.com.

Carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. To obtain a prospectus containing this and other important information, please visit this link. Read the prospectus carefully before investing. There are risks associated with investing, including possible loss of principal.

A blockchain is an open, distributed ledger that digitally records transactions in a verifiable way. A distributed ledger is a database in which data is stored in a decentralized manner. A blockchain stores transaction data in “blocks” that are linked together to form a “chain”, and hence the name blockchain. Tokenization is the recording of digital representations of Fund shares on an applicable blockchain.

Blockchain technology is a relatively new and untested technology, with little regulation. Blockchain systems could be vulnerable to fraud, particularly if a significant minority of participants colluded to defraud the rest. Potential risks also include vulnerability to theft, or inaccessibility, and future regulatory developments could affect its viability. Blockchain networks can also experience delays in transaction processing and settlement, particularly during periods of high network congestion or increased transaction volume. Flaws or errors in blockchain integrated recordkeeping could negatively impact the execution or recordkeeping of transactions in Digital Fund shares. Blockchain networks typically impose transaction fees in the form of the network’s native digital asset. These fees can be unpredictable and may vary significantly depending on network conditions and levels of congestion. Investors should note that they may experience materially different service levels on different blockchains.

Cybersecurity attacks affecting a Digital Fund’s third-party service providers, the application used to transact in Digital Fund shares, blockchain network, or the issuers of securities in which a Digital Fund invests may subject a Digital Fund to many of the same risks associated with direct cybersecurity breaches.

WTGXX is distributed by WisdomTree Securities, Inc. Please read the Fund’s prospectus for specific details regarding the Fund’s risk profile.

You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not a bank account and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s adviser is not required to reimburse the Fund for losses, and you should not expect that the adviser will provide financial support to the Fund at any time, including during periods of market stress.

About WisdomTree

WisdomTree is a global financial innovator, offering a diverse suite of exchange-traded products (ETPs), models and solutions, private market investments and digital asset-related products. Our offerings empower investors to shape their financial future and equip financial professionals to grow their businesses. Leveraging the latest financial infrastructure, we create products that emphasize access and transparency and provide an enhanced user experience. Building on our heritage of innovation, we offer next-generation digital products and services related to tokenized real world assets and stablecoins, as well as our institutional platform, WisdomTree Connect^™, and blockchain-native digital wallet, WisdomTree Prime^®*, and have expanded into private markets through the acquisition of Ceres Partners’ U.S. farmland platform.

* The WisdomTree Connect institutional platform and WisdomTree Prime digital wallet and digital asset services are made available through WisdomTree Digital Movement, Inc., a federally registered money services business, state-licensed money transmitter and financial technology company (NMLS ID: 2372500) or WisdomTree Digital Trust Company, LLC, and may be limited where prohibited by law. WisdomTree Digital Trust Company, LLC is chartered as a limited purpose trust company by the New York State Department of Financial Services to engage in virtual currency business. Visit https://wisdomtreeconnect.com, https://www.wisdomtreeprime.com or the WisdomTree Prime mobile app for more information.

WisdomTree currently has approximately $160.8 billion in assets under management globally, inclusive of assets under management related to our acquisition of Ceres Partners, LLC as of the last reportable period.

For more information about WisdomTree, WisdomTree Connect and WisdomTree Prime, visit: https://www.wisdomtree.com.

Please visit us on X at @WisdomTreeNews.

WisdomTree^® is the marketing name for WisdomTree, Inc. and its subsidiaries worldwide.

PRODUCTS AND SERVICES AVAILABLE VIA WISDOMTREE CONNECT AND WISDOMTREE PRIME:

The products and services available through WisdomTree Connect and the WisdomTree Prime app are not endorsed, indemnified or guaranteed by any regulatory agency.

Category: Business Update