WisdomTree secures NYDFS charter for digital asset custody and stablecoin issuance
The new licenses pave the way for the firm to launch its digital asset platform in New York.
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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.
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