Key TakeawaysThe SEC ruling grants WisdomTree exemptive relief from standard mutual fund regulations that typically require single end-of-day net asset value calculations.The decision allows investors to buy and sell shares of the WisdomTree Treasury Money Market Digital Fund (WTGXX) at any time with transactions settling immediately on blockchain infrastructure.WisdomTree has begun offering continuous trading and real-time settlement for its Treasury money market fund (MMF) following a special Securities and Exchange Commission (SEC) authorisation announced on Tuesday, marking the first time a registered US mutual fund has operated outside traditional daily pricing constraints, as per the company.The SEC issued a ruling on Monday granting WisdomTree exemptive relief from standard mutual fund regulations that typically require single end-of-day net asset value calculations. The decision allows investors to buy and sell shares of the WisdomTree Treasury Money Market Digital Fund (WTGXX) at any time with transactions settling immediately on blockchain infrastructure.Will Peck, who leads digital assets at WisdomTree, called the development unprecedented for investment vehicles operating under the Investment Company Act of 1940. That regulatory framework has historically limited mutual fund transactions to once-daily pricing windows occurring after market close, creating delays between when investors decide to move capital and when those movements execute.The approval removes standard T+1 settlement timelines that apply across conventional securities markets. Investors can now shift money into Treasury-backed positions without waiting overnight for trades to clear, addressing what Peck termed “cash drag” where capital sits unproductive during settlement intervals.Peck thanked the SEC and FINRA for “constructive engagement” enabling what he described as fulfilling “one of the true promises of blockchains and RWA tokenization.” Real-world asset tokenization refers to representing traditional securities through digital tokens on distributed ledgers rather than conventional recordkeeping systems.Securing the capability required multiple regulatory approvals coordinated across WisdomTree entities. The parent company obtained SEC exemptive relief whilst subsidiary WisdomTree Securities received FINRA permission expanding its broker-dealer license to include principal trading of registered fund shares.Exemptive relief represents special SEC permission allowing companies to bypass specific securities law provisions that would normally apply. Without this authorization, WTGXX would function like standard money market funds with single daily pricing regardless of blockchain integration.The SEC ruling permits WTGXX shares to trade at $1 with dealers throughout the day independent of the fund’s official net asset value calculation. Traditional regulations prohibit such pricing flexibility, requiring all transactions to occur at the NAV determined when markets close each business day.Brian Daly, who directs the SEC’s investment management division, positioned the decision within broader agency objectives around capital markets modernization. “The SEC is committed to working with market participants to foster innovation and modernization, especially in enabling the tokenization of our capital markets,” Daly stated. He emphasized the relief “preserves the protections of a regulated money market fund while permitting retail investors intra-day liquidity.”The fund operates through a dealer-principal liquidity model where broker-dealers commit their own capital to facilitate immediate share purchases and sales. This differs from traditional redemption processes that route through fund companies and can introduce timing delays.WisdomTree indicated stablecoin infrastructure powers the settlement mechanics. The company’s conversion system accepts Circle’s USDC and PayPal’s PYUSD, allowing investors to move between tokenized fund shares and dollar-pegged cryptocurrencies supporting rapid transactions.WTGXX invests predominantly in short-duration US Treasury securities and government obligations, maintaining conservative positioning typical of money market products. However, the continuous trading structure transforms how investors interact with the fund compared to traditional offerings in the category.WisdomTree characterized the functionality as positioning the registered fund “as a form of digital cash that can be spent, moved, or traded instantly at any hour” rather than purely serving as an investment vehicle. This framing suggests potential use cases beyond conventional money market fund applications.The asset manager also maintains significant exposure to tokenized asset markets, with RWA.xyz tracking over $772 million across its various blockchain deployments. WisdomTree launched its complete suite of tokenized funds on Solana last month, adding distribution channels beyond Ethereum-based networks.Meanwhile, CEO Jonathan Steinberg highlighted tokenized products as generating current business impact during recent quarterly results. “What were once emerging initiatives, including models, tokenized assets and private markets, are now real businesses contributing to momentum today while still early in their growth,” Steinberg told investors.BEP2 vs BEP20 – Here are Some Important Differences Between Binance & BNB ChainEthereum On-Chain Analysis 21-25 December 2021Crypto to Keep an Eye on This Week: BTC, ETH, MATIC, CAKE, FTTFDIC Weighs Tokenized Deposit Insurance, Eyes Stablecoin Applications by Year-End: Report