WisdomTree Considers Launching a Stablecoin in the U.S.
- The asset manager, who oversees around $63 billion in assets, will first try to obtain the approval of the SEC.
- The regulatory agency might be a bit more welcoming towards WisdomTree, given that it is an established U.S. financial firm.
WisdomTree, an asset manager specializing in Exchange Traded Funds (ETF), is planning to launch a regulated stablecoin in the U.S., financial news outlet FNLondon reported on 13 January.
According to the report, the asset manager will try to obtain the approval of the U.S. Securities and Exchange Commission (SEC), before it releases a digital currency backed by assets such as gold, fiat currencies or government debt.
The news followed closely behind an announcement made last week, according to which WisdomTree was the lead investor in a series A funding round for the Securrency startup, which specializes in tools designed to assure regulatory compliance on blockchain systems.
WisdomTree, which oversees about $63 billion in assets, might receive a warmer reception from the U.S. regulator, given that it is an established money manager.
Still we can not forget the attempts Facebook made to receive regulatory approval for its own stablecoin project, Libra, last year. Towards the end of last year, largely because of regulatory pressure, Facebook’s project lost some of its backers, such as PayPal, Visa, Mastercard, eBay, and Stripe.
Last year, the company was also able to list a physically-backed Bitcoin Exchange Traded Product (ETP) on Switzerland’s SIX stock exchange. According to the asset manager, the new ETP was aimed at professional and institutional investors, providing them with exposure to Bitcoin without the need of private keys and understanding of blockchain financial infrastructure.
- Investment firms Invesco and WisdomTree both followed the example of BlackRock from last week, and filed for their own spot Bitcoin ETFs with the U.S. SEC.
- Although the SEC is yet to approve a single spot Bitcoin ETF product, ETF analysts say there is a good chance BlackRock is the first considering its history with ETFs.
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- South Korea’s FSC clarified that crypto assets will be treated as security tokens if they have the same characteristics as securities as laid out in the Capital Markets Act.
- The FSC noted that stablecoins and crypto assets that do not have an issuer will likely not fall under the definition of securities.
- The ETF review period has been extended for Global X Bitcoin Trust, Valkyrie XBTO Bitcoin Futures Fund, Kryptoin Bitcoin ETF, and WisdomTree Bitcoin Trist.
- While the U.S. SEC has yet to approve a single BTC ETF, more and more financial institutions have started posting applications.