WisdomTree Wins SEC Nod for 24/7 Trading of Tokenized Money Market Fund
WisdomTree secures regulatory permission to run continuous trading and settlement for a tokenized Treasury money market fund
What changed: U.S. regulators granted WisdomTree an exemption that lets shares of its Treasury money market product trade at a fixed $1 price intraday against a dealer’s inventory rather than only at end‑of‑day net asset value.
Market mechanics: The trades will route through the asset manager’s broker‑dealer acting as principal, enabling uninterrupted quoting while the fund’s legal wrapper remains intact and settlement occurs on blockchain rails.
Payment and yield handling: WisdomTree added continuous dividend allocation tied to on‑chain wallet holdings, so interest accrues proportional to intraday custody duration and moves with token transfers.
Settlement rails and chain choice: In parallel to the exemption, WisdomTree is deepening its on‑chain distribution strategy by integrating Solana as a native settlement layer for tokenized products. The firm plans to permit institutional participants to mint and manage positions directly onchain, while offering retail flows via stablecoin onramps and the option to hold tokenized shares in self‑custody wallets.
Distribution and access: Institutional access will come first via the firm’s Connect platform, with possible retail availability later through its Prime offering and native onchain minting rails that emphasize low‑cost transactions and composability.
Ecosystem context: This decision lands as the tokenized Treasury segment has grown to roughly $10 billion in circulation, led by large‑scale programs such as BlackRock’s BUIDL and stablecoin firms like Circle. Native chain settlement could steer liquidity toward networks with lower fees and faster finality.
Competitive ripple: By permitting 24/7 quoting and instant settlement, the SEC’s move reduces a key operational barrier for managers seeking to put cash‑management instruments on distributed ledgers; adding a Solana native rail expands the practical distribution choices for both institutional and retail flows.
Operational tradeoffs: The model shifts intraday execution risk onto dealer balance sheets and relies on market‑making capacity, FINRA clearance and reliable onchain finality to scale safely. Native minting on public chains also increases the need for robust compliance, KYC/AML, and custody controls, especially when retail stablecoin onramps and self‑custody options are available.
Regulatory framing: The approval preserves existing fund governance while carving an operational pathway for blockchain settlement rather than creating a new asset‑class regime. At the same time, expanding settlement to public networks introduces additional regulatory touchpoints that may attract scrutiny from securities, banking and stablecoin regulators.
Implication for settlement economics: Near‑instant settlement onchain could compress operational timelines, reduce reconciliation costs and change liquidity management playbooks at prime brokers and custodians, but benefits hinge on chain reliability and integrated compliance tooling.
Adoption vector: Institutional trading first creates a controlled environment for monitoring market‑making exposure and compliance before broader retail distribution; native chain minting provides a testbed for automation, tighter reconciliations, and composability with other onchain services.
Signal versus noise: The decision is a practical, narrow approval with outsized symbolic value — it demonstrates regulators will authorize operational innovation inside current securities law rather than by creating parallel regimes. Combined with a deliberate multichain distribution push, it signals an incremental path to mainstream regulated tokenization rather than an instantaneous migration.
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