Asset Manager WisdomTree Hopes to Launch a Stablecoin in the US

Published at: Jan. 13, 2020

Asset manager WisdomTree intends to launch a regulated stablecoin in the United States, financial news outlet FNLondon reported on Jan. 13.

Per the report, WisdomTree is looking to deploy a digital currency backed to a basket of assets such as gold, fiat currencies or government debt. The firm also intends to obtain approval by the U.S. Securities and Exchange Commission (SEC) for its project.

The news follows a recent announcement that WisdomTree invested in a startup called Securrency Inc., one of the top institutional-grade blockchain builders in the financial and regulatory space. At the time, the firm announced that it is looking to harness blockchain technology for the ETF market.

According to its website, WisdomTree has a total of $63.7 billion in assets under management.

Regulatory pressure on stablecoins

WisdomTree’s focus on seeking SEC’s approval is interesting given the adversity that regulators have shown to other managed stablecoins, including Facebook’s Libra project. As Cointelegraph reported at the end of December, Switzerland’s President said that the project as it currently stands has failed to obtain regulatory approval.

During the same month, the president of the European Central Bank, Christine Lagarde, said that the financial institution should be ahead of the curve regarding the demand for stablecoins.

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