In a landmark move for traditional finance on the blockchain, US asset manager WisdomTree has launched 24/7 trading and instant settlement for its WisdomTree Treasury Money Market Digital Fund (WTGXX). This initiative enables round-the-clock secondary market trading of a registered, tokenized mutual fund entirely within the existing US regulatory framework, marking a significant step in merging conventional investment products with digital asset infrastructure.
The structure, approved under the Investment Company Act of 1940, utilizes a dealer-principal model—a first for a registered tokenized mutual fund. This model allows shares to settle instantly via blockchain, providing investors with real-time access to yield-bearing exposure to US Treasurys. To facilitate this, WisdomTree secured exemptive relief from the Securities and Exchange Commission (SEC), while its affiliated broker-dealer, WisdomTree Securities, obtained approval from the Financial Industry Regulatory Authority (FINRA) to engage in principal trading of the fund’s shares.
Liquidity for the tokenized shares will be provided through the inventory of participating broker-dealers rather than on a public exchange. Execution depends on the broker’s balance sheet capacity, though the fund’s primary issuance and redemption process—where investors transact directly with the fund at the $1 net asset value—remains unchanged. The continuous trading functionality is initially accessible to institutional clients through WisdomTree’s platform, WisdomTree Connect, with USDC (USDC) serving as the settlement asset for all transactions.
Furthermore, the fund implements a continuous dividend accrual mechanism. Daily income is allocated proportionally based on the duration tokens are held in verified wallets, including during intraday transfers—a feature that aligns token economics more closely with the underlying traditional money market fund’s daily accrual.
It is important to note that WTGXX invests in short-term US Treasury securities and aims to maintain a stable $1 net asset value. However, like all money market funds, it is not insured or guaranteed by the US government.
Tokenized Money Market Funds See Big Growth
Sector Expansion and Market Leaders
Money market funds traditionally pool investor cash to purchase short-term, high-quality debt, focusing on capital preservation and modest yield. Their tokenized counterparts record fund shares on blockchain networks, bringing this foundational cash management tool onchain. The sector has expanded dramatically. According to a November 2025 report from the Bank for International Settlements (BIS), assets in tokenized money market funds—described as an “emerging onchain yield product”—swelled to nearly $9 billion from approximately $770 million at the end of 2023.
This growth is led by the world’s largest asset managers. Data from RWA.xyz, a platform tracking real-world asset tokenization, shows BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) holds the top position with roughly $2.17 billion in assets. Franklin Templeton’s OnChain U.S. Government Money Fund (FOBXX) follows with about $901 million, while WisdomTree’s Government Money Market Digital Fund ranks next with approximately $730 million.
The scale represents a sharp acceleration from early 2025. In February of that year, BlackRock’s fund held about $642 million, Franklin Templeton managed around $617 million, and WisdomTree’s fund had just $112 million.
A Regulatory Catalyst
The surge in tokenized money market funds follows the passage of the GEN
