As per the latest developments, U.S.-based financial asset manager WisdomTree plans to release a regulated stablecoin in the market. As reported by FNLondon, this stablecoin will be tied to three different assets – fiat currency, gold, and government debts.
Furthermore, the so-called stablecoin will have its value closely linked to the U.S. dollar. The publication reports that this move from WisdomTree comes as the asset manager plans to take-on financial giants like Fidelity Investments and BlackRock in the digital currency space.
The New York-based asset manager specialized in exchange-traded-funds (ETFs). Besides, it oversees nearly $63 billion worth of assets globally. WisdomTrees corporate-strategy director William Peck said that this move is a natural extension to its ETF business. He further explained that ETF trade just like stocks, however, they allow investors to put their money in several traditional financial assets.
Regulated Stablecoin Will Have Similar Structure to ETF
Peck also mentioned that the regulated stablecoin will have a similar structure to that of an ETF. However, this will be more appealing to cryptocurrency traders as it will ensure the easy mobility of funds over blockchain-powered networks. He further added:
We absolutely see a market within the existing crypto-native community, transacting digital assets today. Longer-term, this is positioning us to be a leader.
WisdomTree has already indicated its intentions to foray in the stablecoin market last week. The financial giant was a leading investor for the startup firm Securrency. This startup specializes in designing tools that can assure regulatory compliance for blockchain systems.
Furthermore, in 2019, WisdomTree also launched a product on the Swiss Stock Exchange providing investors exposure to Bitcoin. It will be interesting to see SECs stand on this initiative from WisdomTree. The regulator has been very strict on the issuance of stab ...