WisdomTree is planning to introduce a regulated stablecoin in the United States, according to reports from Financial News. The company will reportedly seek approval from the U.S. Securities and Exchange Commission, as it moves to compete with other financial giants in the emerging digital asset sector.
WisdomTree recently made a strategic investment in the blockchain firm Securrency, Inc., as part of its effort to integrate blockchain technology into the ETF ecosystem and improve the investment experience. In a statement announcing that investment, the company noted:
WisdomTree believes that certain current applications of blockchain technology are neither meeting the highest standards of compliance nor delivering the strongest possible user experience under a sound governance structure. As an experienced asset manager and leader in certain core asset classes, WisdomTree is uniquely positioned to improve upon existing operating models through innovation within the existing ETF ecosystem. WisdomTree expects these innovations to be compliant with existing laws and regulations, including applicable securities laws, in the U.S. and various jurisdictions.
In addition to that investment, WisdomTree has also obtained a listing in Switzerland for a physically-backed Bitcoin exchange-traded product.
The company’s announced plans come as other stablecoin proposals continue to face resistance from regulators in the United States and Europe. However, WisdomTree’s experience as a regulated asset manager might make it easier for the company to navigate existing regulatory hurdles and work with U.S. regulators to obtain approval.
WisdomTree has yet to offer a timetable for delivering a formal proposal to the SEC.