WisdomTree, a Bitcoin exchange-traded fund (ETF) issuer, has recently obtained regulatory approval from the New York State Department of Financial Services (DFS) to operate its digital asset business in the state. This approval comes in the form of a charter to operate as a limited-purpose trust company under the New York Banking Law, enabling the launch of its WisdomTree Prime platform in the state. This platform will allow the company to conduct fiduciary custody of digital assets, offer digital wallet services, trade stablecoins, and manage stablecoin reserves, all subject to DFS approval.
Jonathan Steinberg, the Founder and CEO of WisdomTree, emphasized the significance of the license in empowering the firm to provide innovative products while prioritizing customer protection. He highlighted that the New York State Department of Financial Services is a premier regulator for businesses involved in digital asset activities. Steinberg noted that the trust company charter program, which has a long history predating digital assets, is based on bank-grade regulation. This allows WisdomTree to offer innovative products while ensuring customer protection is not compromised.
New York state is known for having one of the strictest crypto regulatory systems in the United States, mandating that crypto-related entities must register and be licensed with the authorities. Several legal actions have been taken by the State against crypto platforms, such as Gemini and the now-defunct crypto lender Genesis, for violating local laws. The recent approval for WisdomTree paves the way for the launch of its Prime platform, which will offer a variety of products within the WisdomTree Prime ecosystem, including WisdomTree Gold and Dollar Tokens.
The mobile platform that will be offered by WisdomTree Prime aims to provide users with access to cryptocurrencies, digital gold, and various digital funds. This integrated ecosystem will enable users to save, spend, and invest on-chain. The company’s trust charter and fiduciary powers will play a crucial role in enhancing customer protection, especially concerning asset storage. Will Peck, the CEO of the WisdomTree Digital Trust Company, expressed confidence in the company’s product offerings and responsible growth strategy, showing a commitment to providing a secure and innovative platform for customers.