Exemptive relief granted by SEC unlocks secondary market liquidity for registered tokenized fund shares for the first time under the Investment Company Act of 1940, enabling 24/7 trading against USDC by WisdomTree’s affiliated broker-dealer

WisdomTree, Inc., a global financial innovator, announced the launch of 24/7 trading and instant settlement capabilities for the WisdomTree Treasury Money Market Digital Fund (WTGXX). This marks the first time registered tokenized mutual fund shares have been permitted to trade and instantly settle 24/7 within the U.S. regulatory perimeter via a dealer-principal liquidity model.

This capability is unprecedented for a fund governed by the Investment Company Act of 1940, representing a key advancement in tokenized security markets compared to traditional markets. Instant settlement lets investors move into yield-bearing assets in real time, eliminating T+1 delays of traditional markets, reducing cash drag and unlocking the efficiency and liquidity advantages of tokenized assets.

Launching this functionality required coordinated regulatory approvals, with multiple WisdomTree entities obtaining SEC exemptive relief. This structural innovation via regulatory relief has not been seen since the introduction of ETFs. Separately, WisdomTree Securities, Inc. (“WisdomTree Securities”), a broker-dealer subsidiary of WisdomTree, received FINRA approval to expand its broker-dealer activities to include principal trading of registered fund shares, initially enabling 24/7 liquidity in tokenized money market fund shares with settlement facilitated by stablecoins.

“Instant settlement has been one of the true promises of blockchains and RWA tokenization,” said Will Peck, Head of Digital Assets at WisdomTree. “We’re grateful for the constructive engagement with the SEC and FINRA, including the grant of exemptive relief and regulatory approvals necessary to bring this innovation to market. This is a true innovation and improvement in the investor experience, and it demonstrates how blockchain can serve as a new set of rails for capital markets. We’re thrilled to bring this feature forward for our tokenized money market fund.”

This functionality will soon be made available to institutional investors via WisdomTree Connect^™. WTGXX has already been driving yield and diversification for investors, enabling more efficient onchain treasury operations for crypto-native institutions. The fund has played a critical role in eliminating the need to go offchain to access yield-bearing investments. With this launch and combined with existing peer-to-peer transfer capabilities, WisdomTree Connect will enable frictionless 24/7 trading and value movement for WTGXX across wallets, accounts, and counterparties. In the future, this functionality may be available to retail investors via WisdomTree Prime^® and other channels.

These approvals allow transactions to settle from broker-dealer inventory rather than directly with the fund, enabling 24/7 execution while preserving the fund’s existing primary-market structure. The initial participating broker-dealer will be WisdomTree Securities, but over time broker-dealers unaffiliated with WisdomTree may also participate, subject to applicable conditions. Trading occurs through bilateral transactions with WisdomTree Securities acting as principal up to its balance sheet capacity, rather than through an exchange or trading venue.

In tandem, WisdomTree has also unveiled continuous dividend accrual, enabling WTGXX shares to allocate each day’s income based on how long each verified wallet held its tokens, using blockchain timestamps to track intraday transfers. This enables shareholders that conduct peer-to-peer transfers to receive their proportionate share of daily interest, even when tokens move between wallets during the day. Paired with 24/7 trading and settlement, continuous dividend accrual enhances intraday functionality while preserving WTGXX’s underlying investment process. Once launched, WisdomTree Securities will provide this dealer-based liquidity source for institutional customers of WisdomTree Connect. USDC will initially be the available stablecoin for these trades.

Source: WisdomTree

SEC Allows WisdomTree Tokenized Fund to Trade Intraday

The MMF issues tokenized shares on a blockchain, and the relief would permit investors to trade tokenized shares with a dealer intraday on a continuous basis and receive faster settlement times than would otherwise be the case.

— U.S. Securities and Exchange Commission (@SECGov) February 23, 2026

ORDER UNDER SECTIONS 6(c) AND 17(d) OF THE INVESTMENT COMPANY ACT OF
1940 AND RULE 17d-1 UNDER THE ACT

WisdomTree Digital Trust (the “Applicant Trust”), WisdomTree Securities Inc. (an “Affiliated
Dealer”), WisdomTree Digital Management, Inc. (the “Adviser”), and WisdomTree Transfers,
Inc. (the “Affiliated Transfer Agent” and, collectively with the Applicant Trust, the Affiliated
Dealer, and the Adviser, the “Applicants”), filed an application on May 8, 2025 and an
amendment to the application on January 16, 2026 requesting an order under section 6(c) of the
Investment Company Act of 1940 (the “Act”) for an exemption from section 22(d) and rule 22c1 under the Act, and under section 17(d) of the Act and rule 17d-1 thereunder for an order that
would permit certain joint transactions otherwise prohibited by section 17(d) of the Act and rule
17d-1 thereunder.

The order requested under section 6(c) of the Act would provide an exemption from
section 22(d) of the Act and rule 22c-1 thereunder to permit the Affiliated Dealer and any other
entity registered as a broker-dealer with the Commission that has entered into a dealer agreement
with a Covered Fund (defined below) or the Covered Fund’s distributor (each, a “Covered
Dealer”) to purchase and sell to individual and institutional investors, on a principal basis, shares
of the WisdomTree Government Money Market Digital Fund (the “Applicant Fund”) at a value
of $1.00 per share, rather than at the Applicant Fund’s next-calculated net asset value (“NAV”)
per share (the “Pricing Relief”)

The order requested under section 17(d) of the Act and rule 17d-1 thereunder would permit the
Affiliated Dealer to enter into an arrangement with the Applicant Fund to trade Covered Fund
shares in reliance on the Pricing Relief (the “Rule 17d-1 Relief”).

On January 26, 2026, a notice of the filing of the application was issued (Investment Company
Act Release No. 35912). The notice gave interested persons an opportunity to request a hearing
and stated that an order disposing of the application would be issued unless a hearing was
ordered. No request for a hearing has been filed, and the Commission has not ordered a hearing.

The matter has been considered and it is found, on the basis of the information set forth in the
application, as amended, that granting the requested exemptions for the Pricing Relief is
appropriate in the public interest and consistent with the protection of investors and the purposes
fairly intended by the policy and provisions of the Act.

It is further found with respect to the requested Rule 17d-1 Relief, on the basis of the information
set forth in the application, as amended, that participation by the Covered Funds in the proposed
transactions is consistent with the provisions, policies and purposes of the Act and is on a basis
no less advantageous than that of other participants.

Accordingly, in the matter of WisdomTree Digital Trust, et al. (File No. 812-15788),
IT IS ORDERED, under section 6(c) of the Act, that the requested exemption from section 22(d)
of the Act and rule 22c-1 under the Act is granted, effective immediately, subject to the
conditions contained in the application, as amended.

IT IS FURTHER ORDERED, under section 17(d) of the Act and rule 17d-1 under the Act, that
the Rule 17d-1 Relief requested is granted, effective immediately, subject to the conditions
contained in the application, as amended.

By the Commission.

Source: SEC