A new dawn is upon digital assets in the US, with progressive regulations fueling notable bullish sentiment and adoption. In this climate, asset management firm WisdomTree has launched its own stablecoin, known as WUSD, and soon to be rebranded as USDW.
This initiative comes shortly after the enactment of the GENIUS Act, which establishes a federal regulatory framework for payment stablecoins and clarifies rules regarding reserve assets.
WisdomTree’s New Stablecoin
Will Peck, Head of Digital Assets at WisdomTree, emphasized the importance of stablecoins, stating, “Stablecoins are fast becoming the internet-native dollar, and the GENIUS Act will only accelerate this trend.”
Currently, WisdomTree’s stablecoin operates exclusively within WisdomTree Prime, the firm’s regulated digital asset platform overseen by the New York Department of Financial Services (NYDFS).
Built on the Stellar blockchain, USDW functions as a transactional asset within a closed ecosystem, facilitating transfers between tokenized funds, including WisdomTree’s tokenized US government money market fund, WTGXX, as well as equities and fixed-income products.
To further bolster its stablecoin ecosystem, WisdomTree is developing a suite of infrastructure services designed to support the use of USDW. This includes establishing on- and off-ramps for existing stablecoins like USDC and PYUSD, as well as enhancing interoperability across multiple public blockchains, including Ethereum, Base, and Avalanche.
Wall Street Giants Embrace Digital Assets
The interest in stablecoins is not limited to WisdomTree. Major Wall Street firms such as JPMorgan, Citigroup, and Goldman Sachs are actively exploring the potential of digital assets to streamline operations.
Citigroup’s CEO Jane Fraser has publicly acknowledged the bank’s efforts to issue its own stablecoin, while Fidelity, managing around $6 trillion in assets, is in the testing phase for its own stablecoin and has applied to launch a tokenized money market fund.
Recent reports from CNBC highlight a collaboration between Goldman Sachs and Bank of New York Mellon, which has resulted in a new platform that allows institutional investors to purchase tokenized money market funds, with ownership securely recorded on Goldman’s blockchain infrastructure.
How The GENIUS Act Could Reshape The Payment Landscape
In the latest episode of Crypto in America, Haseeb Qureshi from Dragonfly discusses the transformative forces reshaping the payments landscape.
With the Department of Justice’s (DOJ) antitrust case against Visa gaining traction, alongside the GENIUS Act promoting stablecoin adoption, Qureshi suggests that the industry might be on the verge of disrupting the long-standing retail payment monopoly held by Visa and Mastercard with stablecoins.
He elaborates on how merchants have been burdened by high interchange fees for years, and how these costs ultimately trickle down to consumers. Qureshi argues that stablecoins could offer a more competitive and cost-effective alternative, potentially integrating with popular payment platforms like Apple Pay and Google Pay, complete with features such as instant rebates and cash back.
Featured image from DALL-E, chart from TradingView.com
