The Securities and Exchange Commission (SEC) in the USA has given special approval to a tokenised government money market fund managed by WisdomTree.
With this approval, shares of the company can be traded throughout the day at a fixed price of $1.00. This is different from traditional funds, where transactions usually happen at the fund’s end-of-day net asset value.
The approval, issued on February 23, 2026, applies to the WisdomTree Treasury Money Market Digital Fund, which issues its shares in tokenised form on blockchain.
The move followed an application from WisdomTree Digital Trust and its affiliated entities under the Investment Company Act of 1940.
A key feature of the fund is its blockchain-based structure. Instead of relying on traditional accounting systems, the fund records ownership through tokenised shares on a blockchain.
This enables tracking and transfer of shares digitally, offering faster settlement and a more efficient way for investors to manage their holdings.
The SEC said in a statement published on X that the relief enables investors to take advantage of quicker settlement periods than would be possible under traditional mutual fund mechanism and facilitates intraday trading of money market fund shares at $1.00.
Even though the technology is new, the SEC emphasized that the fund remains a fully regulated government money market fund and must continue to follow existing investment and liquidity requirements.
According to the SEC, the fund’s participation in these agreements is consistent with the Investment Company Act’s goals and does not put it at a competitive disadvantage when compared to other market players.
The order is not specific to any one product. It immediately affects the WisdomTree Government Money Market Digital Fund. If they comply with the Commission’s standards, the relief also extends to any current or prospective funds under the WisdomTree Digital Trust and associated registered investment firms.
In January 2026, the U.S. Securities and Exchange Commission issued a notice of the application, allowing interested parties to request a hearing. During the review period, no requests for hearings were made, and the Commission did not start one on its own.
Consequently, the order took effect right away after it was issued. The approval is noteworthy because it is one of the most explicit regulatory recognitions to date of the usage of blockchain-based infrastructure in the mutual fund system in the United States.
The decision shows growing regulatory confidence with tokenisation as a mechanism for ownership records, trading, and settlement in traditional financial instruments, even though the fund doesn’t invest in cryptocurrencies.
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