SEC Authorizes WisdomTree’s Blockchain Intraday MMF Structure

This article was first published on The Bit Journal. The U.S. Securities and Exchange Commission has granted SEC approval for a groundbreaking regulatory exemption that allows a tokenized government money market fund managed by WisdomTree to trade its shares intraday at a fixed price of $1.00, regardless of end-of-day net asset value calculations.

The order is a formal application of its approval to the WisdomTree Treasury Money Market Digital Fund, a fund that uses blockchain technology to issue its shares as tokens. This ruling was awarded according to the Investment Company Act of 1940 after an application filed by WisdomTree Digital Trust and related companies.

SEC Approval Enables Intraday Fund Trading

The SEC approval, according to the Division of Investment Management, allows investors to buy and sell shares in money market funds to a dealer at a fixed price of $1.00 during the trading day. This is a significant exception to the normal rules of mutual fund pricing, which usually demand that transactions be made at the carried-out net asset value at the subsequent calculated value.

The fund is a regulated government money market fund which uses blockchain technology to store ownership and transfer it digitally as opposed to the traditional fund accounting systems. Under the structure adopted under SEC approval, investors can buy and sell shares intraday rather than awaiting the calculation of the end-of-day NAV of the fund.

SEC Highlights Faster Settlement Benefits

The SEC in a public announcement said that the approval would permit intraday trading at fixed price and would permit investors to enjoy faster settlement time than the traditional mutual fund operations. The regulator has pointed out that even though the blockchain technology is used, the fund is not exempt of the currently applicable requirements in the areas of investment, valuation and liquidity.

The SEC authorization was done under section 6(c) of the Investment Company Act to exempt the fund under the section 22(d) and the rule 22c-1. Such provisions typically bar dealers form selling mutual fund shares at other than the next computed NAV. With the order registered broker-dealers under this category, such as WisdomTree Securities, are allowed to buy and sell shares of the funds at the constant price of $1.00.

Order Extends Beyond Single WisdomTree Fund

Moreover, the Commission granted associated relief under Section 17(d) and Rule 17d-1 to permit associated dealers to enter trading arrangements with the fund not restricted by the existence of trading limitations. According to SEC, this feature of the SEC approval complies with the purpose of Investment Company Act and does not harm the fund and investors.

Although the order is directly applicable to the WisdomTree Treasury Money Market Digital Fund, the SEC approval is more general. It also includes other current or future funds within WisdomTree Digital Trust and other registered investment companies so long as they satisfy certain regulatory criteria. These are to operate as government money market funds, have the stable NAV of $1.00 based on approved valuation, and be advised by WisdomTree Digital Management or an affiliate.

SEC Approval Takes Effect Without Objections

In January 2026, the SEC had announced that it had received the application and invited comment. No hearing requests were filed and the SEC approval became effective immediately after issuance.

Whereas the fund does not invest in cryptocurrencies, the SEC approval is one of the most obvious endorsements to date by the regulator of blockchain-based infrastructure in the U.S. mutual fund system. The ruling is an indicator of increased regulatory ease over tokenization as a ownership record, intraday trading, and settlement instrument in traditional financial products.

Conclusion

The SEC approval of the WisdomTree Treasury Money Market Digital Fund highlights the increased regulatory confidence in blockchain technology in the conventional finance. The decision shows how tokenization can progress settlement, ownership records, and fund operations and ensure that the protection of investors remains high by facilitating intraday trading at a fixed, stable price of $1.00.

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Summary

• WisdomTree fund allowed intraday trading at $1.00 fixed price.
• Shares recorded digitally, enabling faster settlement and compliance.
• Approval signals SEC support for tokenization in U.S. funds.

Glossary Of Key Terms

SEC:  U.S. regulator for securities and investor protection.

SEC Approval:  Official authorization for a fund or product under SEC rules.

WisdomTree Digital Fund:  A government money market fund issuing tokenized shares.

Tokenized Shares:  Fund shares recorded digitally on a blockchain.

Intraday Trading:  Buying and selling shares within the same trading day.

NAV (Net Asset Value):  Fund’s total assets minus liabilities, usually daily.

Blockchain:  Digital ledger technology for secure ownership and transfers.

Stable NAV ($1.00):  Constant share price maintained at $1.00.

Faster Settlement:  Quicker completion of fund share transactions.

Tokenization:  Representing assets digitally to improve trading and record-keeping.

Frequently Asked Questions about SEC Approval

1. What is SEC approval?

It lets the WisdomTree fund trade tokenized shares intraday at $1.00 fixed price.

2. How does the fund use blockchain?

Shares are tokenized on blockchain for digital ownership and faster settlement.

3. Does it apply to other funds?

Yes, other WisdomTree funds meeting criteria can also use this structure.

4. Does the fund hold cryptocurrencies?

No, it uses blockchain for record-keeping, not crypto investment.

References

Twitter

Sec.gov

Disclaimer

The article is purely informational and it is not a financial investment or a trading advice. Cryptocurrencies are extremely risky and volatile. Before investing, the readers are to conduct personal research and seek the advice of a qualified financial expert.

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