WisdomTree gets green light for digital asset business in New York News โธ US โธ Regulation
WisdomTree gets green light for digital asset business in New York
WisdomTree joins an exclusive list of entities with approval in a state that has one of the most stringent crypto regulatory systems in the United States.
2 min read
Updated: Mar. 22, 2024 at 2:46 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Bitcoin exchange-traded fund (ETF) issuer WisdomTree has secured regulatory approval from the New York State Department of Financial Services (DFS) to operate its digital asset business in the state.
According to a March 22 statement, the asset management firm received a charter to operate as a limited-purpose trust company under the New York Banking Law. This charter enables the company to debut its WisdomTree Prime platform in the state.
Under the charter, WisdomTree can conduct fiduciary custody of digital assets, including offering digital wallet services, trading stablecoins, and managing stablecoin reserves, subject to DFS approval.
Jonathan Steinberg, the Founder and CEO of WisdomTree, emphasized that the license empowers the firm to provide innovative products while prioritizing customer protection. He added:
“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 โ which long predates digital assets โ is based on bank-grade regulation, allowing us to offer products that capitalize on innovation without sacrificing customer protection.”
New York has one of the strictest crypto regulatory systems in the United States, requiring crypto-related entities to register and be licensed with the authorities. Over the past year, the State has brought several legal actions against crypto platforms, including Gemini and now-defunct crypto lender Genesis, for violating its local laws.
WisdomTree Prime platform
The license also sets the stage for the launch of the WisdomTree Prime platform. This platform will offer a range of products within the WisdomTree Prime ecosystem, including the issuance of WisdomTree Gold and Dollar Tokens.
The mobile platform will grant users access to cryptocurrencies, digital gold, and various digital funds, providing an integrated ecosystem for saving, spending, and investing on-chain. The firm’s trust charter and fiduciary powers will help it to enhance customer protection, particularly regarding asset storage.
Will Peck, the CEO of the WisdomTree Digital Trust Company, expressed confidence in the company’s product offering and responsible growth strategy.
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Posted In: US, Regulation
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
WisdomTree
WisdomTree is a global financial innovator, offering a well-diversified suite of exchange-traded products (ETPs), models, and solutions.
Gemini
Gemini is a regulated digital asset exchange and custodian that allows customers to buy, sell, store, and stake digital assets in a regulated, secure, and compliant manner.
Genesis
Genesis is an institutional digital asset markets and a full-service digital currency prime brokerageย providing a single point of access for select qualified individuals and global institutional investors.
The WisdomTree Bitcoin Fund (BTCW) is an exchange-traded fund that provides exposure to the price of Bitcoin, less expenses and liabilities.