The United States Securities and Exchange Commission has approved an exemptive order allowing the WisdomTree Digital Money Market Fund, trading under the ticker WTGXX, to operate under a framework that differs significantly from traditional mutual funds. Issued on February 24, 2026, the decision authorizes the fund to maintain a constant share price of $1.00 throughout the trading day while enabling investors to buy and sell shares on an intraday basis. This regulatory approval represents a notable shift in how regulated investment funds can leverage blockchain technology.
Under conventional mutual fund rules, investors are subject to forward pricing, meaning transactions are executed based on the fund’s net asset value calculated only after markets close. As a result, investors typically do not know the precise value of their trades until the end of the day. The SEC’s approval allows WisdomTree’s digital fund to depart from this long-standing practice by using on-chain infrastructure to support continuous pricing and near-instant settlement.
Blockchain-Enabled Settlement and Trading
The ruling permits the fund to process transactions on a real-time basis using blockchain technology. By moving settlement onto an on-chain ledger, the fund eliminates the multi-day settlement cycles commonly associated with mutual fund transactions. This approach is designed to provide investors with faster access to capital and smoother operational workflows, while also reducing administrative friction for registered broker-dealers.
With the new structure in place, investors are able to trade shares throughout the day without waiting for the market to close. The constant $1.00 pricing model ensures that transactions can be executed immediately, aligning the fund’s behavior more closely with cash-like instruments. Registered broker-dealers are also authorized to participate directly in on-chain transactions, enabling a more streamlined trading process that relies on automated recordkeeping rather than manual reconciliation.
Implications for Broker-Dealers and Market Liquidity
The SEC confirmed that WisdomTree Securities Inc., the affiliated broker-dealer, can facilitate these on-chain transactions without receiving an unfair competitive advantage. This determination was a key component of the approval, as it addressed concerns about market fairness and equal access. By ensuring that the structure supports adequate liquidity, the regulator signaled that investors should be able to enter and exit positions with relative ease.
Automated ledgers underpinning the fund’s operations are expected to accelerate settlement times and minimize back-office complexity. For broker-dealers, this means reduced operational overhead and more efficient trade processing. For investors, the result is greater flexibility and faster access to funds, particularly in scenarios where liquidity and timing are critical.
Competitive Positioning in a Changing Market
The SEC’s decision places the WisdomTree fund in a strong position relative to both traditional money market funds and regulated stablecoins. Like conventional money market funds, WTGXX seeks to maintain a stable net asset value of $1.00. However, its ability to offer intraday liquidity and real-time settlement introduces features more commonly associated with digital assets. This hybrid model could attract new capital from investors seeking stability combined with technological efficiency.
Today, the Division of Investment Management issued an exemptive order for WisdomTree Treasury Money Market Digital Fund to permit investors to trade the MMF's shares at $1 with a dealer on an intraday basis, regardless of its end-of-day NAV.
Read here: https://t.co/7bvtaJnv9A
— U.S. Securities and Exchange Commission (@SECGov) February 23, 2026
At the same time, the approval may encourage other asset managers to explore blockchain-based trading and settlement models. As more funds evaluate the operational benefits of on-chain infrastructure, investor expectations around speed, transparency, and accessibility could shift. The ruling, therefore, has implications beyond a single product, potentially influencing broader adoption of blockchain technology within regulated financial markets.
Risks and Considerations
Despite the advantages, money market funds remain subject to certain risks. These funds are not insured by the Federal Deposit Insurance Corporation, and investors may face technical and regulatory uncertainties associated with on-chain transactions. While blockchain infrastructure can enhance efficiency, it also introduces new operational considerations that participants must understand.
The SEC’s approval underscores a growing willingness to accommodate innovation within established regulatory frameworks, while still emphasizing investor protection and market integrity. As tokenized financial products continue to emerge, the WisdomTree decision may serve as a reference point for how traditional investment vehicles can evolve through blockchain integration.
