WisdomTree Expands Stablecoin Strategy Amid Regulatory Changes

According to Cointelegraph, global asset manager WisdomTree has ventured into the full-stack stablecoin market following the enactment of the US GENIUS Act, aiming to bolster digital dollar infrastructure for its onchain financial offerings. WisdomTree's US dollar-backed stablecoin, USDW, plays a pivotal role in its comprehensive strategy to cater to both retail and institutional clients, as stated by Will Peck, head of digital assets at WisdomTree. USDW is issued by the WisdomTree Digital Trust Company, a New York-chartered trust, to facilitate digital dollar transactions for payments and support the firm's tokenized investment products, notably its US money market fund, the Government Money Market Digital (WTGXX). Investors can receive dividends in USDW on eligible assets or reinvest them through a dividend reinvestment program where available, Peck explained. The company announced that USDW is a rebranding of its previously named WUSD stablecoin. Cointelegraph reached out to a WisdomTree spokesperson for further details on the rebranding but had not received a response at the time of publication. Currently operating on the Stellar blockchain via WisdomTree Prime, the stablecoin is anticipated to expand to additional blockchains over time. WisdomTree described its stablecoin approach as an interoperability layer that enables clients to on-ramp and off-ramp using established stablecoins like USDC. The strategy is also designed to support corporate use cases in onchain investing, reserves management, and treasury operations. The timing of WisdomTree's expanded stablecoin strategy aligns with the recent passage of the GENIUS Act—a comprehensive regulatory framework for digital dollars that imposes strict compliance and disclosure requirements while restricting foreign issuance of dollar-pegged tokens. The Trump administration has prioritized stablecoin legislation, citing the market's projected growth and the potential role digital dollars could play in maintaining the greenback's global dominance. In June, Treasury Secretary Scott Bessent referenced industry research estimating that the stablecoin market could expand to $3.7 trillion by 2030. The stablecoin market is currently valued at $268 billion, according to CoinMarketCap, with Tether's USDt and Circle's USDC commanding approximately 85% of the market. Favorable regulations and increasing adoption have prompted major financial institutions to explore stablecoins. As Cointelegraph recently reported, JPMorgan, Bank of America, and Citi are all in the early stages of developing their own digital dollar initiatives. Bank of America's strategy may be the most comprehensive, with CEO Brian Moynihan informing shareholders earlier this month that stablecoins are being considered to modernize the bank's payment infrastructure.