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- WisdomTree, a leading ETF sponsor, is launching its first open-ended fund with tokenized share records on the Stellar blockchain.
- The fund offers passive exposure to US Treasuries and takes advantage of the Stellar blockchain for enhanced liquidity and transparency.
WisdomTree, a leading provider of exchange-traded funds (ETFs) and exchange-traded products, has taken a groundbreaking step into the world of blockchain by launching its first-ever blockchain-enabled fund.
After years of R&D with our technology and service providers, the WisdomTree Short-Term Treasury Digital Fund ($WTSY) is now in effect. @wbpeck answers some frequently asked questions about this fund in his latest blog post: https://t.co/IQ7pqGfrsR
— WisdomTree (@WisdomTreeFunds) September 28, 2022
The recently launched WisdomTree Short-Term Treasury Digital Fund (WTSY) is an open-ended fund that tracks the Solactive Treasury index from one to three years. What sets this fund apart is its use of the Stellar blockchain, making it the pioneering open-end fund with tokenized share records on the Stellar or Ethereum blockchains.
Leveraging the Stellar Blockchain for enhanced fund offerings
This strategic decision by WisdomTree comes at a time when interest rates are rising and the company recognizes the great importance of US Treasuries as a fundamental building block for investment portfolios. By offering passive exposure to US Treasuries through the Stellar blockchain, WisdomTree aims to strengthen its position as a leading provider of passive exposure using blockchain-based solutions. With plans to expand its fund offerings, WisdomTree is committed to leading the way in providing passive exposure to crypto building blocks.
Benefits of the Stellar Blockchain for the fund and investors
By leveraging the capabilities of the Stellar blockchain, WisdomTree aims to improve liquidity, transparency, and standardization within the ETF industry. The launch of the WisdomTree Short-Term Treasury Digital Fund is the culmination of extensive research, development and collaboration with technology and services providers, as well as regulatory discussions with the U.S. Securities and Exchange Commission. The fund operates within the regulatory framework of a traditional mutual fund, ensuring transparency and regulatory compliance.
Using the Stellar blockchain brings several benefits to the WisdomTree Short-Term Treasury Digital Fund. Stellar offers efficient transaction processing with low costs, high throughput and reliable settlement completion. This allows for near-instantaneous settlement and facilitates seamless trading throughout the year. The fund leverages the secure and decentralized infrastructure of the Stellar blockchain to ensure the integrity and accuracy of tokenized share records.
Unlocking new opportunities in the digital economy
WisdomTree’s embrace of the Stellar blockchain represents an important milestone in the evolution of the ETF industry. By harnessing the potential of blockchain technology, WisdomTree seeks to unlock new opportunities for mainstream assets, such as U.S. Treasury bonds, within the rapidly evolving digital economy. The launch of the WisdomTree Short-Term Treasury Digital Fund marks a major step forward in the adoption of blockchain technology within traditional financial markets, potentially revolutionizing the way investors access and trade assets.
As WisdomTree continues to innovate and expand its blockchain-enabled offerings, the impact on the price of Stellar’s native cryptocurrency, XLM, remains a topic of interest. With WisdomTree’s substantial presence and expertise in the financial industry, the use of the Stellar blockchain could generate more attention and adoption, potentially leading to an increase in demand for XLM and driving the price to new highs, such as $0.15.
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