- WisdomTree revealed details of its stablecoin approach and made public its Stellar-based stablecoin, USDW.
- USDW, which will be renamed WUSD, has mainly been used within the WisdomTree Prime app and is now set to expand to more blockchains and applications.
- WisdomTree positions USDW for payments and its successful WTGXX fund, with about $480 million in assets, for yield generation.
- The company will enable retail users to deposit and withdraw using USDC and PYUSD, facilitating greater access to its tokenized funds.
- WisdomTree also aims to serve other stablecoin issuers by offering features like 24/7 interest accrual and is working towards round-the-clock trading between tokenized funds and stablecoins.
WisdomTree, a major asset manager, announced its stablecoin plan and confirmed the existence of its USDW stablecoin built on the Stellar blockchain. Until now, USDW has only been available to users of WisdomTree Prime, the company’s retail investment app.
USDW, which will soon be renamed WUSD, has a current market cap slightly above $1 million. WisdomTree now plans to expand the stablecoin’s use to more blockchains and payment situations. At the same time, its WTGXX tokenized money market fund is being marketed for yield and has gathered about $480 million in assets under management. WTGXX is one of 13 tokenized funds offered by the company.
The company’s strategy includes using the stablecoin to pay dividends and allowing users to transfer assets between WTGXX, equities, fixed income, and other investment products. According to a statement by Will Peck, Head of WisdomTree Digital Assets, “WTGXX qualifies as reserves for stablecoin purposes both in New York and under the GENIUS Act.” The firm has reported $200 million in institutional flows from USDC into its tokenized funds and plans to support both USDC and PYUSD for retail deposits and withdrawals.
Unlike some competitors that track internal transactions without using a blockchain, WisdomTree says that its stablecoin is a true blockchain-based asset. The company does not plan to limit itself to its own stablecoin but is working to support others in its ecosystem. Peck noted that two wallet addresses account for $466 million of the existing WTGXX fund issuance.
To meet the needs of blockchain-native clients, WisdomTree is adding features such as 24/7 interest accrual and peer-to-peer asset transfer. The company is working towards enabling 24/7 trading between its tokenized funds and stablecoins. According to the report, not only stablecoin issuers but also other crypto and digital asset management firms, such as Ondo Finance, invest in WTGXX.
The WisdomTree Prime app originally launched two years ago, giving users access to Bitcoin, Ether, tokenized Gold, and WisdomTree funds. The stablecoin was introduced after the company received a New York Trust Charter in 2024, allowing for expanded digital asset activities.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- Dignitas Unveils ‘Digi’ AI Agent for Esports, Powered by Theta Network
- Bitcoin Treasury Firms Sink: Median Stock Down 52% From 2025 Highs
- Draper: Bitcoin’s Tech Pulls Crypto Innovation, Fiat Faces Extinction
- Ethereum Whale Withdrawals Trigger Aave Liquidity Crunch, Rates Soar
- US Bank Groups Urge OCC to Delay Crypto Trust Bank Applications
