ETF challenger plans to launch regulated cryptocurrency

WisdomTree, an asset manager that oversees $63.8bn, is rushing to launch a regulated cryptocurrency in the US to get ahead of industry giants BlackRock and Fidelity Investments in the digital currency space.

The company plans to unveil a so-called stablecoin — a digital currency pegged to a basket of assets, such as gold, fiat currencies or government debt. WisdomTree wants the Securities and Exchange Commission, the US financial watchdog, to approve and regulate the product but declined to comment on whether talks have begun. 

Proponents believe stablecoins can create new investment opportunities by making typically illiquid assets tradeable over the internet, a process known as tokenisation. John Salmon, a partner at law firm Hogan Lovells, likened these products to shares in a mutual fund.