SEC unlocks capital markets prime time for WisdomTree's tokenized money market fund

The SEC's Investment Management Division granted WisdomTree's tokenized MMF (WTGXX) exemptive relief to transact continuously at a fixed $1 per share, irrespective of the next calculated NAV.

Source: SEC Press

➡️ What this means

This effectively gives WTGXX two structural characteristics:

- A constant NAV 1940 Act money market fund

- A blockchain-native instrument that economically resembles a stablecoin with regulated yield embedded

In practical terms, a WTGXX share now looks like: stablecoin with a fixed market price at $1 + continuously distributed MMF yield, wrapped inside a 1940 Act structure.

➡️ Why this matters

WTGXX begins to resemble Treasuries operationally within margin and collateral frameworks, with three important features:

1️⃣ Primary issuance and redemption at $1

2️⃣ 24/7 onchain settlement

3️⃣ Immediate convertibility into stablecoin liquidity

Money market funds are already eligible collateral in many bilateral relationships under ISDA CSA frameworks.

Add:

- Constant NAV transactability

- Onchain settlement

- Stablecoin cash legs

And tokenized MMFs start to look like a natural, potentially superior collateral asset for onchain derivatives, repo, and structured products.

➡️ The BIGGER picture

Will other big tokenized MMF such as BlackRock's BUIDL and Franklin Templeton's BENJI be next?

If tokenized MMF begins to get treated in the same way, we will likely see the beginning of a vibrant collateral ecosystem emerge. They become active balance sheet instruments inside derivatives, repo, and leverage markets.

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