WisdomTree is approved for 24/7 trading of crypto market funds

The bridge between DeFi and TradFi

WisdomTree, a global asset management company overseeing approximately $168 billion in assets under management, has received an exemption from the U.S. Securities and Exchange Commission (SEC) allowing 24/7 trading and instant settlement for shares of the WisdomTree Treasury Digital Money Market Fund (WTGXX) – a tokenized money market fund (MMF) backed by U.S. Treasury bonds and government securities. Launched on February 24, 2026, this marks the first time a registered tokenized mutual fund has been permitted 24/7 trading and settlement under U.S. legal frameworks under the Investment Companies Act of 1940, utilizing a trustee-agent liquidity model.

The approval, detailed in SEC Investment Companies Act Notice No. 35968 (dated February 23, 2026), grants an exemption from Section 22(d) and Rule 22c-1, allowing an affiliated securities brokerage firm ( WisdomTree Securities ) and other eligible dealers to buy and sell tokenized shares on a principal basis at a fixed price of US$1.00 per share during the trading day — bypassing traditional end-of-day net asset value (NAV) calculations .

Additional support under Section 17(d) and Rule 17d-1 facilitates coordinated activities among WisdomTree entities. FINRA has also provided the necessary licenses for the securities brokerage firm's expanded operations.

Why is 24/7 trading necessary ?

Traditional financial markets operate within defined timeframes. In contrast, the cryptocurrency market operates continuously. By approving 24/7 trading for tokenized money market funds (MMFs), the SEC is effectively bridging these two models.

• Improving flexibility in treasury management.

• Enables real-time liquidity deployment.

• Supporting on-chain mortgage strategies

• Facilitating the integration of DeFi with managed assets.

For institutional investors, this opens up the possibility of dynamically managing short-term cash equivalents in sync with the performance of the global cryptocurrency market.

A clear sign of approval

This move reflects a broader convergence between traditional finance (TradFi) and decentralized finance (DeFi). Cryptocurrency money market funds can serve as yield-generating, low-volatility assets within the blockchain ecosystem — potentially acting as on-chain collateral, payment assets, or liquidity buffers.

As U.S. Treasury bonds and tokenized money market funds become increasingly popular, managed yield products could increasingly become the foundational infrastructure in the digital asset market.

The SEC's approval signals that regulators aren't entirely opposed to blockchain-based financial innovation—as long as it meets compliance standards, protects investors, and ensures transparency. Instead of outright opposing encryption, the agency appears to be facilitating it within the existing securities framework.

Our review

In a year of deregulation, WisdomTree's breakthrough 24/7 tokenized money market fund (MMF) demonstrates the potential of blockchain to modernize cash management without compromising oversight. As Peck noted, this is about "bringing innovation to market" while protecting regulations – paving the way for tokenized finance to thrive within existing rules. Currently, this represents a structural victory in terms of efficiency within the over $10 billion tokenized treasury sector, and the spillover effect is likely to continue across risk assets (RWAs).

Disclaimer: The information presented in this article is the author's personal opinion in the field of cryptocurrency. This is not financial or investment advice. All investment decisions should be based on careful consideration of your personal portfolio and risk tolerance. The views expressed in this article do not represent the official stance of the platform. We recommend that readers conduct their own research and consult with experts before making any investment decisions.

Compiled and analyzed by HCCVenture

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