Will Peck: WisdomTree’s Digital Asset Strategy - [Making Markets, EP.6]

Dec 1, 2023

Will Peck, Head of Digital Assets at WisdomTree, discusses the firm's digital roots, the complexity of launching a bitcoin ETF, their innovative app, and the differences in regulations between Europe and the US. They also explore the advantages of tokenization, instant settlement, and the future of stablecoins in asset holdings.

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ADVICE

Use ETFs For Workflow, Not Self-Custody

Use ETFs when you need workflow simplicity and compatibility with advisor systems.
Don't expect ETFs to replace self-custody for users who want direct control of crypto.

INSIGHT

Public Chains Win On Standards And Interoperability

Public blockchains offer shared standards, open developer libraries, and broad interoperability that private chains lack.
Permissionless networks can add controls at token or platform layers to meet regulatory needs.

ADVICE

Encode Compliance Into Token Design

Build token controls (KYC, blacklists) and use blockchain analytics to meet OFAC and regulator obligations.
Choose regulated stablecoins and design token rules to balance openness with compliance.

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My guest today is Will Peck. Will is the Head of Digital Assets at WisdomTree, where he oversees the firm’s digital assets, crypto, and blockchain initiatives. After speaking with WisdomTree’s CIO, Jeremy Schwartz, a few weeks ago it was great to explore their digital strategy with Will.

We discuss the firm’s digital roots, the complexity around launching a bitcoin ETF, and their innovative app – WisdomTree Prime. Please enjoy my conversation with Will Peck.

For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.

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Show Notes:

(00:02:05) - First Question - How he became the head of Digital Assets at WisdomTree

(00:02:51) - Wisdom Trees first steps into the digital assets space

(00:04:50) - Why he thinks bitcoin is not a replacement for gold

(00:06:31) - His views on the US regulatory market and why launching in Europe is different

(00:09:15) - FCC denial and what that means for GPTC

(00:11:01) - The BlackRock twist that finally put things in motion

(00:13:11) - The likelihood that similar businesses and assets will copy one another

(00:16:37) - Derby style launching and splitting the pot

(00:17:57) - Why he thinks ETFs make the most sense

(00:20:13) - His macro take on where Bitcoin is

(00:21:29) - The reason why they chose the public market versus private

(00:24:08) - How black listing is handled when a financial firm launches a token

(00:26:21) - What he thinks about the finality of settlement

(00:27:53) - WisdomTree Prime’s focus on the wallet

(00:31:24) - The big change for Wisdom Tree to build physical infrastructure

(00:35:05) - He explains Prime

(00:36:16) - Stable coins and what they are invested in

(00:37:40) - How Wisdom Tree bond funds work

(00:37:59) - Creating funds around regulatory ambiguity

(00:39:06) - How bond funds pay interest to tokens

(00:40:22) - Logistics behind moving tokens from a Prime wallet to another account

(00:42:06) - Keeping record of tokens

(00:43:38) - He talks about the token opportunities they are most excited about

(00:46:24) - Steps to get a stable coin to pay interest

(00:47:17) - What he's most excited for Wisdom Tree clients to experience

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