Global asset manager WisdomTree has entered the full-stack stablecoin space following the passage of the US GENIUS Act, aiming to strengthen digital dollar infrastructure for its onchain financial products.
WisdomTree’s US dollar-backed stablecoin, USDW, is a key component of its integrated strategy to serve both retail and institutional users, according to Will Peck, head of digital assets at WisdomTree.
USDW is issued by the WisdomTree Digital Trust Company, a New York-chartered trust, to facilitate the movement of digital dollars for payments and to support the firm’s tokenized investment products — most notably, its US money market fund, the Government Money Market Digital (WTGXX).
Investors will receive dividends in USDW on eligible assets or reinvest them through a dividend reinvestment program where available, Peck said.
The company said USDW is a rebranding of its previously named WUSD stablecoin. Cointelegraph contacted a WisdomTree spokesperson for more details on the rebrand but had not receives a response at time of publication.
Currently operating on the Stellar blockchain via WisdomTree Prime, the stablecoin is expected 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 (USDC). The strategy is also designed to support corporate use cases in onchain investing, reserves management and treasury operations.
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US stablecoin economy is gaining traction
WisdomTree’s timing in unveiling its expanded stablecoin strategy is no coincidence, coming on the heels of the GENIUS Act’s passage — a sweeping regulatory framework for digital dollars that imposes strict compliance and disclosure requirements while restricting foreign issuance of dollar-pegged tokens.
The Trump administration has made stablecoin legislation a priority, citing the market’s projected growth and the role digital dollars could play in preserving 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 worth $268 billion, according to CoinMarketCap, with Tether’s USDt (USDT) and Circle’s USDC commanding roughly 85% of the market.
Favorable regulations and rising 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.
BoA’s strategy may be the most comprehensive, with CEO Brian Moynihan telling shareholders earlier this month that stablecoins are being considered to modernize the bank’s payment infrastructure.
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