Wisdomtree stablecoin is coming in 2020. The United States-based Wisdomtree Investments Inc. sponsors exchange-traded funds and manages assets close to forty billion dollars ($40B). Now, Wisdomtree stablecoin plans have taken the crypto industry by surprise. The entry of such traditional financial giants will undoubtedly help bring the virtual currencies into the mainstream.
Wisdomtree stablecoin will be a non-volatile virtual currency approved by the Securities and Exchange Commission (SEC). It will be backed by many conventional assets such as fiat, gold, and more.
Wisdomtree stablecoin faces competition before the launch
Wisdomtree is a US financial giant with large exchange-traded fund solutions. With Wisdomtree stablecoin, it is looking to take advantage of the rapidly rising blockchain industry. Its foray into the virtual currencies realm reflects the rising trend of classic financial players joining the stablecoin bandwagon. The company will create and launch the stablecoin as per the guidelines issued by the SEC and other U.S. regulations governing the crypto sector.
Officials from the company will also be meeting with the SEC people to get more regulatory clarity on the matter. The company believes that a Wisdomtree stablecoin will help it fight competitors like BlackRock and Fidelity, who are also undertaking efforts to launch their virtual currencies. Fidelity has also conducted a feasibility study regarding the same. Advantages like better clearing, settlements, and security are attracting traditional financial names towards blockchain and virtual currencies.
Wisdomtree stablecoin will support the company’s other ETF offerings
Recently, the company launched a BTC exchange-traded solution that allows investors to invest in the Bitcoin market, albeit safely. William Peck of Wisdomtree says that the upcoming stablecoin will be an evolution of the company’s product offerings that are increasingly influenced by the crypto sector.
The SEC-regulated Wisdomtree stablecoin will be fully backed by strong fiats like U.S. dollar, gold, bonds, and other safe real-world assets. They are looking to target a niche market within the crypto realm itself to ensure the coin appeals to the right audience.
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