WisdomTree, a Bitcoin exchange-traded fund (ETF) issuer, has recently received 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 to operate as a limited-purpose trust company under the New York Banking Law. The issuance of this charter allows WisdomTree to roll out its WisdomTree Prime platform in New York.
Jonathan Steinberg, the Founder and CEO of WisdomTree, highlighted the significance of this license in empowering the firm to offer innovative products while keeping customer protection at the forefront. He acknowledged the New York State Department of Financial Services as a premier regulator in the digital asset space, emphasizing the importance of robust regulation in ensuring customer safety. The trust company charter program, with its roots in bank-grade regulation, positions WisdomTree to provide cutting-edge products without compromising on customer protection.
New York is known to have one of the most rigorous crypto regulatory frameworks in the United States, mandating that crypto-related entities must register and obtain licenses from regulatory bodies. In recent times, the State has taken legal actions against various crypto platforms, underscoring the importance of compliance with local laws. This regulatory environment sets the stage for the imminent launch of the WisdomTree Prime platform, which is poised to offer a diverse range of products within the WisdomTree Prime ecosystem.
The forthcoming platform, WisdomTree Prime, will encompass offerings such as WisdomTree Gold and Dollar Tokens. This mobile platform is designed to provide users with access to cryptocurrencies, digital gold, and a variety of digital funds, creating a comprehensive ecosystem for saving, spending, and investing on-chain. The trust charter and fiduciary powers granted to WisdomTree will play a crucial role in bolstering customer protection, particularly concerning asset storage. Will Peck, the CEO of the WisdomTree Digital Trust Company, expressed optimism in the firm’s product lineup and its commitment to responsible growth strategies.
The regulatory approval secured by WisdomTree marks a significant milestone in the firm’s expansion into the digital asset space. With a strong emphasis on customer protection and compliance with stringent regulatory requirements, WisdomTree is well-positioned to offer innovative products within the rapidly evolving crypto landscape.