TL;DR
- WisdomTree launched USDW stablecoin, rebranded from WUSD, to act as a transactional “dollar rail” integrated with its tokenized U.S. government money market fund (WTGXX) for instant payments and passive yield (4.07%).
- WTGXX fund surged to $486M AUM (from $12M) in 2025, fueled by demand for compliant, yield-bearing reserves that meet strict GENIUS Act and NYDFS standards, enabling 24/7 trading and P2P transfers.
- USDW leverages regulatory clarity from the GENIUS Act, expands beyond Stellar to Ethereum/Arbitrum/Base, and processes $200M+ in institutional flows, with future 24/7 WTGXX trading and treasury APIs planned.
WisdomTree has officially launched USDW, a rebranding of its WUSD stablecoin, to create a seamless financial infrastructure bridging digital transactions and yield-bearing assets. This U.S. dollar-backed stablecoin, issued by WisdomTree’s New York-chartered trust company, serves as a transactional “dollar rail” for payments and investments.
It integrates directly with WisdomTree’s tokenized U.S. government money market fund, WTGXX, which provides institutional-grade yield. Together, they enable real-time movement of value and passive income generation. The two-layer system focuses on retail users using the WisdomTree Prime app and institutions through WisdomTree Connect.
Money Market Fuel: WTGXX’s Meteoric Growth as a Reserve Asset
Central to this ecosystem is WTGXX, a tokenized money market fund holding short-term U.S. Treasury debt and government securities. The fund has exploded from $12 million to $486 million in assets under management in 2025 alone, reflecting surging demand for compliant, yield-bearing reserves.
As a 1940 Act-registered fund, WTGXX meets strict reserve requirements under the newly passed GENIUS Act and NYDFS guidelines, making it an ideal collateral asset for stablecoin issuers. Its tokenized format enables round-the-clock trading, automatic dividend reinvestment, and direct peer-to-peer transfers.
Regulatory Tailwinds: How the GENIUS Act Enables Expansion
WisdomTree’s launch takes advantage of clear regulations from the GENIUS Act, which sets strict standards for dollar-pegged stablecoins. This law limits foreign stablecoins and supports U.S.-regulated options like USDW. Treasury Secretary Scott Bessent estimates that the stablecoin market could expand from $252 billion now to $3.7 trillion by 2030.
USDW’s design as a complementary tool for tokenized funds, rather than a standalone product, helps it navigate compliance hurdles while supporting corporate treasury operations, dividend payments, and cross-border settlements.
Multi-Channel Strategy: Interoperability and Future Roadmap
Currently live on Stellar, USDW will expand to Ethereum, Arbitrum, Base, and other blockchains to boost accessibility. WisdomTree’s interoperability layer already processes over $200 million in institutional USDC inflows across six blockchains, allowing frictionless on/off-ramps between USDW, USDC, and PYUSD.
Future upgrades include 24/7 WTGXX trading against stablecoins and API-driven treasury tools for businesses. This multi-chain approach positions WisdomTree to compete with traditional banking services while embedding its stablecoin within a growing ecosystem of 13 tokenized real-world asset funds.
