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Market News

WisdomTree Launches USDW Stablecoin Backed by U.S. Dollar

Written By:
Iyiola Adrian

Reviewed By:
Jahnu Jagtap

Last updated: July 24, 2025 1:50 AM
Published July 24, 2025 12:46 AM
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Last updated: July 24, 2025 1:50 AM
Published July 24, 2025 12:46 AM
WisdomTree Launches USDW Stablecoin Backed by U.S. Dollar (1)

Global asset manager WisdomTree has entered the stablecoin market with the launch of USDW stablecoin. This coin is backed by the U.S. dollar, which means each USDW is meant to be worth one dollar.

The rollout follows the recent approval of the GENIUS Act, a new U.S. law aimed at tightening rules around stablecoins. USDW is issued by the WisdomTree Digital Trust Company, a New York-chartered trust that is authorized to manage and distribute digital financial products. 

The stablecoin is designed to work as a key piece of WisdomTree’s broader digital asset strategy for both retail users and large institutions.

The USDW token is already live on the Stellar blockchain and is distributed through WisdomTree Prime, the company’s mobile app. It is expected to expand to other blockchains in the future. 

The firm says the stablecoin will help users make payments and also invest in tokenized assets like WisdomTree’s Government Money Market Digital Fund (WTGXX). 

In a statement, Will Peck, head of digital assets at WisdomTree, said, “USDW is a key part of our integrated approach to offering digital financial services to both individual and institutional clients.”

Investors using eligible products will receive dividends in USDW or have the option to reinvest them through a dividend reinvestment plan, if one is offered.

WisdomTree confirmed that USDW is a rebrand of its earlier product called WUSD, but has not shared further details about the name change. 

The firm is promoting USDW as an interoperability tool that allows clients to easily move between USDW and other popular stablecoins like USDC. This helps simplify how users enter and exit the digital asset space using stablecoins they already trust. The token is also being positioned for corporate use in areas like digital treasury management, reserves handling, and on-chain investment strategies.

This came as the GENIUS Act was signed into law last week. The bill is expected to set strict compliance rules and ban foreign-issued dollar tokens from operating in the U.S. 

U.S. Treasury Secretary Scott Bessent said the stablecoin market could grow to $3.7 trillion by 2030, up from $268 billion today. Tether’s USDT and Circle’s USDC currently hold 85% of the market share.

Also Read: Senate to Release CFTC Crypto Draft in September

Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.

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Iyiola - Crypto Journalist at The Crypto Times
By Iyiola Adrian
Follow:
Iyiola is an experienced crypto writer specializing in simplifying complex blockchain and cryptocurrency topics for a broad audience. With expertise in ICOs, DeFi, NFTs, and regulatory updates, he offers valuable insights to help readers make informed decisions.
Jahnu Jagtap - Crypto Research Analyst at The Crypto Times
By Jahnu Jagtap
Follow:

Jahnu Jagtap is a Research Analyst with over 5 years of experience in crypto, finance, fintech, blockchain, Web3, and AI. He holds a BSc in Mathematics and is certified in Blockchain and Its Applications (SWAYAM MHRD), Cryptocurrency (Upskillist), and NISM Certifications. Jahnu specializes in technical, on-chain, and fundamental analysis, while also closely tracking global macro trends, regulations, lawsuits, and U.S. equities. With a strong analytical background and editorial insight, he drives content that delivers clarity and depth in the fast-evolving world of digital finance.

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