6 months ago
33 ARTICLE AD
The new licenses pave the way for the firm to launch its digital asset platform in New York.
Global financial company WisdomTree announced today that it secured the New York State Department of Financial Services (NYDFS) approval to operate as a New York limited-purpose trust company charter. This development allows WisdomTree to engage in digital asset activities, including custody of digital assets and stablecoin issuance.
We're excited to announce @WisdomTreeFunds received a charter from NYS DFS to operate as a trust company.
This reinforces our commitment to innovation & empowers us to launch WisdomTree Prime in New York in the coming weeks.
Read more here: https://t.co/GTtiaEQiM2
— WisdomTree Prime™ (@WisdomTreePrime) March 22, 2024
According to a press release published on Friday, this prestigious charter enables WisdomTree to offer fiduciary custody of digital assets, issue DFS-approved stablecoins, and manage stablecoin reserves through its new entity, WisdomTree Digital Trust Company, LLC.
WisdomTree Digital Trust Company will initially provide products within the WisdomTree Prime ecosystem, including the WisdomTree Gold Token and the WisdomTree Dollar Token, with reserves maintained under a DFS-approved framework. The charter also grants WisdomTree the ability to serve New York’s retail customers with access to WisdomTree Prime.
Jonathan Steinberg, WisdomTree Founder and CEO, is confident in WisdomTree’s ability to regulate the digital asset industry effectively while ensuring the safety of consumers through existing robust regulations.
“The New York State Department of Financial Services is the premier regulator for businesses that engage in digital asset activity. This well-established trust company charter program – which long predates digital assets – is based on bank-grade regulation, allowing us to offer products that capitalize on innovation without sacrificing customer protection,” stated Steinberg.
Will Peck, Head of Digital Assets at WisdomTree and CEO of WisdomTree Digital Trust Company, LLC, emphasized the high compliance standards of a New York limited-purpose trust company, which offers a leading platform for regulated tokenized products and services.
“We have a robust initial product offering and a strong plan to grow in a responsible manner with this charter in New York and through our other licenses across the nation,” stated Peck.
In recent years, some states have created new regulatory frameworks to address the growing popularity of crypto assets. These include limited-purpose charters that allow financial institutions to offer crypto-related services while providing some level of consumer protection through state oversight. An example of a limited-purpose banking charter is the New York Limited Purpose Trust Company Charter. Issued by the state of New York, it allows institutions to act as trustees for digital assets.
With the latest regulatory win, WisdomTree joins the ranks of established players like Coinbase, Fidelity, and Gemini. All these companies now hold chartered limited-purpose trust company status, allowing them to act as fiduciaries for digital asset custody under the Banking Law.
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
Crypto Briefing may augment articles with AI-generated content created by Crypto Briefing's own proprietary AI platform. We use AI as a tool to deliver fast, valuable and actionable information without losing the insight - and oversight - of experienced crypto natives. All AI augmented content is carefully reviewed, including for factural accuracy, by our editors and writers, and always draws from multiple primary and secondary sources when available to create our stories and articles.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
