BlockBeats News, February 25th, U.S. asset management company WisdomTree launched the WisdomTree Treasury Money Market Digital Fund with 7×24 trading and real-time settlement capabilities, enabling registered institutional-grade tokenized money market funds to achieve round-the-clock secondary market trading within a regulated framework.
The company stated that this is the first time a registered institutional-grade tokenized money market fund has been allowed to conduct round-the-clock trading and settlement using a dealer-owned model under the Investment Company Act of 1940. This structure allows for instant share settlement, enabling investors to have real-time exposure to U.S. Treasury yield.
To implement this model, the WisdomTree entity obtained exemptive relief from the U.S. SEC. Its affiliate broker-dealer WisdomTree Securities also received approval from FINRA to engage in proprietary trading of the fund’s shares. Liquidity will be provided through the broker-dealer’s inventory rather than on an exchange, with execution dependent on the broker’s balance sheet capacity, while the fund’s primary issuance and redemption process remains unchanged.
This feature will initially be available to institutional users through WisdomTree Connect, with USDC as the settlement asset for round-the-clock trading. WisdomTree is also introducing a continuous dividend accrual mechanism, distributing daily earnings based on the duration of token holding in a validated wallet.
WTGXX invests in short-term U.S. Treasury securities, aiming to maintain an asset net asset value of $1, but is not backed by any government insurance or guarantee.
