WisdomTree Eying US-Regulated Stablecoin Launch

Asset manager WisdomTree is planning to enter the lucrative market of stablecoins with the launch of an asset-pegged digital currency regulated in the United States.

Reported by the FNLondon on Monday, the firm overseeing $63 billion in client assets is considering to peg the digital currency to a basket of assets including gold, fiat currencies, and government bonds.

The company also intends to approach the Securities and Exchange Commission (SEC) in the country and consult for regulatory needs; however, it is not clear whether talks between the asset manager and the regulator have already been initiated.

A natural extension of ETF business

Headquartered in the United States, WisdomTree specializes in exchange-traded products (ETP) and is slowly moving towards the digital asset market as well. The company’s decision to dive into the Stablecoin Stablecoin Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Read this Term market surfaced days after its investment into Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term startup Securrency, leading to a $17.65 million Series A financing round.

Then, the asset manager also revealed its plans to introduce decentralized technology into the ETF market and believe that this step will bring the instruments to a wide range of investors and will also improve investment experience.

Speaking to Coindesk, William Peck, WisdomTree’s corporate-strategy director, revealed that the structure and purpose of the stablecoin would be similar to an ETF.

“We absolutely see a market within the existing crypto-native community, transacting digital assets today,” he told the publication.

Last month, the company also launched a Bitcoin exchange-traded product (ETP) and listed it on Swiss-based stock exchange SIX. The instrument will allow investors to invest in the digital currency without holding any of it.

Meanwhile, in the United States, the SEC's stance on crypto is still doubtful, and it is continuously delaying to decide on Bitcoin ETFs. However, on the positive side, the New York State Department of Financial Services (NYDFS) recently approved a US dollar-pegged stablecoin launched by Binance, allowing its trading within the state.