ETF challenger plans to launch regulated cryptocurrency
WisdomTree, a $63 billion asset manager unveiled plans to launch a regulated stablecoin pegged to a basket of assets such as fiat currency, government debt or gold. They have stated their intention to have the SEC approve and regulate the product, but have not mentioned if those discussions have begun. This announcement comes a week after WisdomTree invested $17.7 million in Securrency, a startup providing market infrastructure technology to improve compliance and interoperability.
Why it matters
- Most asset-backed tokens have been launched by crypto-native companies such as Paxos and CoinShares, this announcement shows traditional financial players are also interested in stablecoins.
- While the structure has not been announced, it appears to look similar to Facebook's stablecoin efforts, putting in the purview of global regulators. As we saw with Libra, regulators across the world have demonstrated their hesitancy towards allowing a stablecoin that could potentially compete with fiat money.
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