WisdomTree Doubles Down on Crypto: Launches USDW Stablecoin & Tokenized Yield in Bold DeFi Play

Wall Street meets Web3 as $8B asset manager WisdomTree storms the stablecoin arena.

The institutional heavyweight just dropped USDW—its FDIC-insured dollar-pegged token—alongside a tokenized yield product that could rewrite the rules of fixed income. No more settling for 0.05% APY from your neighborhood megabank.

Tokenized Treasury 2.0?

WisdomTree’s move sandwiches TradFi reliability with DeFi yields, offering what they call "institutional-grade" crypto exposure. The pitch? All the compliance of a 1940 Act fund with the 24/7 liquidity of Uniswap pools.

Because nothing says "financial revolution" like repackaging T-bills as ERC-20 tokens.

The real test? Whether crypto natives trust a Wall Street-branded stablecoin—and whether regulators buy the "we’re just digitizing existing products" narrative. One thing’s certain: the race to tokenize everything just got a nine-figure contender.

TLDR

• WisdomTree launches USDW platform to modernize digital dollar finance.
• USDW anchors payments; WTGXX adds yield in tokenized asset ecosystem.
• USDW built for GENIUS Act compliance; expands beyond Stellar blockchain.
• WTGXX hits $486M AUM; supports real-time trading with USDW.
• Interoperability layer boosts USDW access across six major blockchains.

Global asset manager WisdomTree has officially launched a full-stack stablecoin platform built around its USDW stablecoin. The move is part of a broader effort to modernize digital dollar infrastructure following the GENIUS Act. USDW anchors WisdomTree’s platform as the transaction LAYER supporting tokenized finance across retail and institutional markets.

JUST IN: WisdomTree set to launch WUSD stablecoin, primarily on $ETH network. pic.twitter.com/rhfMazqElB

— Whale Insider (@WhaleInsider) July 22, 2025

The company structured USDW to function as digital dollar rails across its product ecosystem. It facilitates seamless payments, stable value transfers and efficient access to yield-bearing products. WisdomTree Digital Trust Company, a New York-chartered entity, issues the stablecoin.

USDW plays a central role in the firm’s tokenized offering, particularly alongside WTGXX, its digital money market fund. USDW enables payments and transfers, while WTGXX generates yield. This dual structure creates a full-stack solution tailored for expanding use cases in digital assets.

USDW Positioned to Compete in Expanding Stablecoin Market

WisdomTree developed USDW to meet compliance and infrastructure requirements under the GENIUS Act, which sets strict U.S. standards. The Act reinforces the need for domestic issuers, pushing firms like WisdomTree to act swiftly. USDW is currently operational on the stellar blockchain within WisdomTree Prime.

USDW was rebranded from WUSD and designed to enhance functionality in tokenized finance. It supports dividend distributions and enables DRIP functionality across the firm’s 13 tokenized funds. Users can reinvest digital dividends or MOVE seamlessly between products, increasing capital efficiency.

WisdomTree plans to expand USDW to other blockchains beyond Stellar. The firm is also focused on building interoperability across public chains. This positions USDW as a foundational asset for transfers, rewards, and future tokenized strategies.

WTGXX Emerges as the Yield Layer in WisdomTree’s Framework

WTGXX, WisdomTree’s tokenized government money market fund, has seen rapid growth, reaching $486 million in AUM by mid-July. It is structured under the 1940 Act and qualifies as a compliant reserve asset under current regulatory frameworks. This makes it attractive for corporate clients and stablecoin-native firms seeking onchain yield.

The fund’s success is tied to its ability to provide consistent returns and meet liquidity demands. WTGXX also supports interest accrual and will soon enable real-time trading against USDW. These features align with the 24/7 demands of modern finance.

By combining USDW for transactions and WTGXX for reserves, WisdomTree offers an integrated solution for stablecoin management. This dual-product model supports seamless treasury workflows and enhances onchain liquidity strategies. It also appeals to firms needing reliable GAAP-equivalent cash alternatives.

Integrated Platform and Interoperability Layer Boost Market Reach

WisdomTree built a stablecoin interoperability layer supporting six major blockchains, including Ethereum, Base, and Arbitrum. This layer enhances USDW’s utility by allowing deposits and withdrawals in USDC and PYUSD. Over $200 million in USDC has already flowed through this system into tokenized funds.

The company also enables self-custody wallet access for on- and off-ramping stablecoins. This reduces barriers for clients managing liquidity and operations on-chain. Such integrations reinforce WisdomTree’s commitment to 24/7 access and low-cost movement.

USDW and WTGXX now power an expanding platform of tokenized financial products. Combined with robust APIs, the offering supports investing, reserves, and treasury functions. WisdomTree’s strategy places USDW at the center of digital dollar growth, backed by real assets and institutional-grade structure.