Asset manager WisdomTree makes plans to launch its own stablecoin

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Updated on Mar 11, 2020

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WisdomTree recently revealed plans to launch its own cryptocurrency.
The asset manager's crypto will be a stablecoin, pegged to a basket of assets, including fiat currencies, gold, and government bonds.
The company also revealed that it will collaborate with the US SEC on the coin's design in order to ensure that it is regulatory compliant.

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According to recent reports, it appears that yet another stablecoin might be underway, as the asset manager WisdomTree recently revealed that it is interested in asset-pegged digital currencies. The company currently oversees $63 billion in its clients’ assets, but it appears that it has greater plans for the future, as it wishes to launch a digital currency pegged against a basket of assets.

In other words, the coin would not only be pegged to the USD, but also to other fiat currencies, government bonds, and even gold.

The company also revealed that it wishes to go about its plans the right way, which is why it intends to approach the US securities regulator, the SEC. With the SEC’s crackdown on crypto businesses launching securities, the company does not wish to leave anything to chance. Its way of avoiding any regulatory hiccups is to go directly to the regulator itself for consultation. However, it is currently unknown whether the two are already in contact.

The new stablecoin will be similar to an ETF

WisdomTree is a US-based company that specializes in ETPs (Exchange-Traded Products). With the crypto adoption constantly progressing, the company believes that expanding into the crypto sector is only natural, and the best way to do it is, apparently, through the stablecoin market.

The firm made this decision after it made an investment into a blockchain-based startup called Securrency, which led to a $17.65 million Series A financing round. The company then decided to bring decentralized tech into the ETF market, hoping to widen the range of investors and improve their experience.

The company’s corporate strategy director, William Peck, stated that the purpose and structure of the upcoming stablecoin would be similar to an exchange-traded fund (ETF). The company already made a move towards the crypto industry by launching a Bitcoin ETP, which is listed on Switzerland’s stock exchange, SIX. Thanks to the instrument, investors can invest in a cryptocurrency safely, without having to actually own it.