WisdomTree Investments is one of the largest traditional asset management firms in the United States (U.S.). Recently, the firm has made a number of moves in the digital asset space. The most recent of which came today, when the firm announced plans to launch an SEC-regulated stablecoin in the U.S.
WisdomTree’s Plans for a Stablecoin Explained
WisdomTree is the seventh largest exchange-traded funds (ETF) provider throughout the U.S. Despite constituting a traditional asset management firm — with over $40 billion worth of assets under management —the firm has dove head-first into the digital asset space over the last two months.
Earlier today, reports surfaced of WisdomTree planning to launch its own stablecoin in the U.S. The stablecoin will be supported by a number of underlying assets, including gold, fiat currencies, and potentially government debt.
WisdomTree has made it clear that regulatory compliance is a top priority. They want the developing stablecoin to be both approved and regulated by the U.S. Securities and Exchange Commission (SEC).
It is unclear however, both how much development has taken place thus far and if the firm has begun discussions with the SEC. WisdomTree said it wants to outpace its traditional rivals in the digital asset space, including BlackRock and Fidelity Investments.
Fidelity has been notably active in the space, starting as far back as 2014 when the firm launched a Bitcoin mining operation in New Hampshire. Since that time, they’ve initiated Fidelity Digital Assets which operates as a New York Trust Company and offers Bitcoin custody and transaction services. The firm’s CEO, Tom Jessup, has said support for Ether could arrive in 2020. Apparently WisdomTree wants a piece of the pie as well.
How WisdomTree Became Involved in the Digital Asset Space
Last month, in December of 2019, WisdomTree launched a physically backed Bitcoin ETF. The product was listed on Switzerland’s primary stock exchange, SIX. The move was WisdomTree’s first activity in the digital asset space.
SIX is no stranger to digital assets. The exchange has previously announced plans to tokenize some existing securities by 2021.
Earlier this month, WisdomTree led a Series A funding round in Securrency which raised more than $17 million. Securrency is a platform designed for the compliant use of security tokens.
With plans for an SEC-regulated stablecoin, it appears as though WisdomTree’s push in the digital asset space is in full swing.
What do you think about WisdomTree’s plan to launch an SEC-regulated stablecoin? We’d like to know what you think in the comments section below.
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