WisdomTree Secures SEC Approval for Instant Settlement of Tokenized Money Market Fund

Regulatory approvals have paved the way for WisdomTree to introduce a new level of efficiency in its tokenized money market fund. The SEC has granted exemptive relief, allowing investors to trade shares at $1 with a dealer on an intraday basis, regardless of the net asset value. This development is expected to reduce the impact of settlement delays and unlock the benefits of digital assets.

The WisdomTree Treasury Money Market Digital Fund (WTGXX) has been issued across nine networks, including Ethereum and Solana, and offers an annualized percentage yield of 3.5%. The fund's shares are backed by U.S. Treasuries and aim to trade at a value of $1 like a stablecoin.

The SEC's relief order states that its green light is 'appropriate in the public interest.' This approval is part of the agency's efforts to modernize securities rules and regulations, as seen in Project Crypto initiative launched by SEC Chair Paul Atkins. The development underscores the increasing comfort level of regulatory bodies with mainstream financial products augmented by blockchain-based formats.