WisdomTree has launched what it claims as a first for the U.S. market: tokenized, registered mutual fund shares that can trade and settle instantly, around the clock, through a broker-dealer acting as principal. This structure is better suited to institutional workflows than anything previously available under the Investment Company Act of 1940.
The capability is live for WisdomTree’s Treasury Money Market Digital Fund (WTGXX), with settlement in USDC stablecoin via WisdomTree’s broker-dealer subsidiary, WisdomTree Securities. Institutional investors can access it through WisdomTree Connect. The fund has grown to around $730 million in issuance, though its holder base remains highly concentrated. Just four wallets account for nearly 94% of tokens, one of which is Ondo Finance’s OUSG, with the others likely stablecoin issuers using the fund for reserve management.
Tokenized money market funds offering fast settlement are not new. Franklin Templeton’s BENJI fund has used blockchain-based recordkeeping since 2021, and some other products have offered around-the-clock trading. What distinguishes WisdomTree’s model is the specific regulatory structure underpinning it. The SEC granted exemptive relief allowing an affiliated dealer to buy and sell fund shares from its own inventory at a fixed $1.00 price, rather than routing transactions through the fund’s primary creation and redemption mechanism at end-of-day NAV.
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