WisdomTree has obtained approval from the U.S. Securities and Exchange Commission (SEC) for instant settlement of its tokenized money market fund, freeing it from the traditional settlement speed of Wall Street. This development will provide investors with faster and more transparent transactions for their funds. Money market funds typically invest in low-risk, highly liquid financial instruments used by investors for short-term financial needs. WisdomTree’s tokenization of this fund aims to modernize financial services through advanced blockchain technology, simplifying the investment process with instant settlement.
Tokenization involves converting traditional financial assets into digital tokens secured on a blockchain, enabling investors to trade assets more efficiently and rapidly while enhancing transparency and security in financial markets. This approval signifies regulatory willingness to embrace innovative technologies and could pave the way for similar facilities in other financial products. The instant settlement feature is expected to improve market liquidity and reduce risk for investors by minimizing transaction times.
This advancement highlights the growing influence of blockchain and crypto technologies in global financial markets, helping to overcome limitations of traditional financial systems. WisdomTree’s initiative is likely to encourage other financial institutions to adopt modern technologies as well.
Source: decrypt
