The Approval of WisdomTree’s Digital Asset Business by the New York State Department of Financial Services

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 within the state. This approval came in the form of a charter that allows the company to function as a limited-purpose trust company under the New York Banking Law.

Expansion of Services

With this new charter, WisdomTree can now unveil its WisdomTree Prime platform in New York. The platform is authorized to engage in fiduciary custody of digital assets, including providing digital wallet services, trading stablecoins, and managing stablecoin reserves. All of these services are subject to approval from the DFS.

Emphasis on Customer Protection

Jonathan Steinberg, the Founder and CEO of WisdomTree, highlighted the importance of customer protection in their operations. He stressed that the license obtained from the DFS allows the firm to introduce innovative products while ensuring the safety and security of their customers.

New York is known for having one of the strictest regulatory frameworks for cryptocurrencies in the United States. Crypto-related entities in the state are required to register and obtain licenses from the authorities to operate legally. Failure to comply with these regulations can lead to legal actions, as seen with previous cases involving platforms like Gemini and Genesis.

The regulatory approval paves the way for the launch of the WisdomTree Prime platform, which will offer a variety of products within the WisdomTree Prime ecosystem. This includes the issuance of WisdomTree Gold and Dollar Tokens, providing users with access to cryptocurrencies, digital gold, and digital funds on a mobile platform.

WisdomTree’s trust charter and fiduciary powers play a crucial role in enhancing customer protection, especially in terms of asset storage. Will Peck, the CEO of the WisdomTree Digital Trust Company, expressed confidence in the company’s product offerings and responsible growth strategy moving forward.