WisdomTree has received an SEC exemptive approval and launched the WisdomTree Treasury Money Market Digital Fund (WTGXX), a tokenised mutual fund that can be traded 24 hours a day with instant settlement, The Block reported on Feb. 24 local time.
WTGXX is a registered open-end mutual fund that invests in U.S. Treasuries and other government securities. It operates under securities laws and has received approval from the SEC and FINRA (the Financial Industry Regulatory Authority). Will Peck (윌 펙), head of digital assets at WisdomTree, said, "Instant settlement is one of blockchain's core advantages," adding, "With cooperation from the SEC and FINRA, we have been able to bring this innovation to market."
WTGXX uses a dealer-principal liquidity model in which broker-dealers trade directly with investors. They buy and sell fund shares using their own assets without going through traditional redemption procedures. Settlement is carried out via stablecoins, and WisdomTree provides a stablecoin conversion service including Circle's USDC and PayPal's PYUSD.
Chi-gyu Hwang
delight@d-today.co.kr