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Key Takeaways
- WisdomTree has been granted a charter by the New York State Department of Financial Services, allowing it to operate as a limited-purpose trust company.
- The charter enables WisdomTree to launch its personal finance mobile app, WisdomTree Prime, and offer digital asset custody services, including stablecoins.
- This move positions WisdomTree as a leader in New York’s digital asset space.
Asset manager WisdomTree has secured a trust company charter from the New York State Department of Financial Services (DFS).
The charter authorizes WisdomTree to function as a limited-purpose trust company under the New York Banking Law.
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This designation allows the launch of WisdomTree Prime, a personal finance mobile app designed to offer users a seamless experience in managing digital assets, all under the watchful eye of enhanced regulatory oversight.
The charter also paves the way for WisdomTree to introduce digital asset custody services, including comprehensive wallet services, the issuance of DFS-approved stablecoins, and the meticulous management of stablecoin reserves through its newly minted WisdomTree Digital Trust Company.
In addition, the firm will release the WisdomTree Gold Token and the WisdomTree Dollar Token, both of which will be accessible via the WisdomTree Prime app.
Jonathan Steinberg, the visionary founder and CEO of WisdomTree, emphasized the significance of this development, stating:
<The NYDFS> 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.
WisdomTree’s commitment to regulatory compliance is evident in its pledge to align the reserves for these assets with the DFS’s stringent framework, ensuring full backing of the stablecoin with reserves equivalent to or exceeding the nominal value of the stablecoin units in circulation.
This approach guarantees the redeemability of the stablecoins at a one-to-one exchange rate with the US dollar, reinforcing trust and stability in WisdomTree’s digital offerings.
The achievement of the DFS banking charter enables WisdomTree to extend its innovative personal finance app to retail investors in New York and solidifies its position in the digital finance ecosystem.
WisdomTree was also one of the firms that got its application for a spot Bitcoin ETF approved in January.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
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