Key Highlights
- The U.S. Securities and Exchange Commission approved exemptive relief allowing WisdomTree’s tokenized money market fund to trade intraday at a fixed $1.00 price.
- The fund issues blockchain-based tokenized shares, enabling continuous trading and faster settlement within the U.S. mutual fund framework.
- The relief applies to the WisdomTree Treasury Money Market Digital Fund and may extend to future eligible funds under WisdomTree Digital Trust.
The U.S. Securities and Exchange Commission (SEC) has approved exemptive relief for a tokenized government money market fund run by WisdomTree, allowing its shares to trade during the day at a fixed price of $1.00, regardless of the fund’s end-of-day net asset value.
The order, issued on February 23, 2026, applies to the WisdomTree Treasury Money Market Digital Fund, which issues its shares on a blockchain in tokenized form. The decision was made under the Investment Company Act of 1940 after an application filed by WisdomTree Digital Trust and its affiliated entities.
According to the SEC’s Division of Investment Management, the exemption permits investors to trade money market fund shares with a dealer on an intraday basis at a constant price, a departure from standard mutual fund pricing rules that typically require transactions to occur at the next calculated net asset value.
Tokenization enables continuous trading and faster settlement
The fund issues its shares in tokenized form on a blockchain, allowing ownership to be recorded and transferred digitally rather than through traditional fund accounting systems. Under the approved structure, investors can buy and sell shares throughout the trading day rather than waiting for the fund’s end-of-day NAV calculation.
In a statement posted by the SEC on X, the regulator said the relief permits intraday trading of money market fund shares at $1.00 and allows investors to benefit from faster settlement times than would otherwise be available under conventional mutual fund mechanics.
The SEC emphasized that while the technology is new, the fund itself remains a regulated government money market fund subject to existing investment and liquidity requirements.
Exemption from longstanding pricing rules
The Commission granted the relief under Section 6(c) of the Investment Company Act, exempting the fund from Section 22(d) and Rule 22c-1. These provisions generally prohibit dealers from selling mutual fund shares at prices other than the next computed NAV.
Under the order, WisdomTree Securities and other registered broker-dealers that enter into dealer agreements with the fund are permitted to purchase and sell shares on a principal basis at a stable $1.00 price.
The SEC concluded that the exemption is appropriate in the public interest and consistent with investor protection, citing the fund’s structure, valuation methodology, and compliance safeguards.
Approval of affiliated dealer arrangements
In addition to pricing relief, the Commission approved an exemption under Section 17(d) and Rule 17d-1 of the Act. This relief allows WisdomTree Securities, an affiliated dealer, to enter into trading arrangements with the fund that would otherwise be restricted due to affiliated transaction rules.
The SEC said the fund’s involvement in these arrangements aligns with the purpose and intent of the Investment Company Act and does not disadvantage the fund compared with other participants in the market.
Broader application to future funds
Although the order applies directly to the WisdomTree Government Money Market Digital Fund, it is not limited to a single product. The relief also applies to other existing or future funds under WisdomTree Digital Trust, as well as related registered investment companies, as long as they meet the Commission’s requirements.
These requirements include operating as a government money market fund, maintaining a stable net asset value of $1.00 using amortized cost or penny-rounding valuation methods, and being advised by WisdomTree Digital Management or an affiliated entity.
No objections filed during review period
The U.S. Securities and Exchange Commission published notice of the application in January 2026 and gave interested parties the opportunity to request a hearing. No hearing requests were submitted during the review period, and the Commission did not initiate one on its own.
As a result, the order became effective immediately upon issuance. The approval stands out as one of the clearest regulatory acknowledgments so far of blockchain-based infrastructure being used within the U.S. mutual fund system. Although the fund does not invest in cryptocurrencies, the decision reflects increasing regulatory comfort with tokenization as a tool for ownership records, trading, and settlement in traditional financial products.
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