WisdomTree Launches USDW Stablecoin and WTGXX Tokenized Fund
WisdomTree has launched USDW, a US dollar–backed stablecoin issued by its New York–chartered Digital Trust Company. The USDW stablecoin is fully collateralized by cash and cash equivalents and undergoes regular third-party audits. Initially live on the Stellar blockchain via WisdomTree Prime, USDW offers seamless on-chain and off-chain rails and supports interoperability with established tokens like USDC. Alongside USDW, WisdomTree introduced WTGXX, a tokenized US Government Money Market Fund delivering around 5% annual yield with automated dividend payouts and reinvestment. The rollout follows the US GENIUS Act, which enforces strict compliance for dollar-pegged tokens and limits foreign issuance. WisdomTree aims to expand USDW and WTGXX across multiple blockchains and partner with custodians and DeFi platforms to boost liquidity and trust, targeting retail traders, institutional clients, corporate treasuries, and on-chain investors.
Neutral
Stablecoins typically maintain a 1:1 peg to the US dollar, so the introduction of USDW stablecoin is unlikely to affect its price. In the short term, traders may see improved liquidity and on-chain dollar utility, but this does not translate to price volatility for USDW. In the long term, broader adoption and integration across chains could enhance market stability and liquidity in DeFi, but the stablecoin’s value remains pegged. Therefore, the overall market impact on USDW’s price is neutral.