By
Chimamanda U. Martha
April 26th, 2024
WisdomTree intends to use the WisdomTree Digital Trust Company to provide products and services to institutions and commercial customers in the future.
WisdomTree, a New York-based asset manager, has received a trust corporation charter from the New York State Department of Financial Services (NYDFS), permitting it to launch its crypto application, WisdomTreePrime.
Scope of WisdomTree Bags Crypto Trust Company Charter from NYDFS
As highlighted in a post on X, Eleanor Terret, a popular Journalist at FoxBusiness said the WisdomTree’s trust company charter authorizes it to provide fiduciary custody of digital assets, including digital wallet services.
🚨BREAKING: @WisdomTreeFunds has been granted a trust company charter by @NYDFS, giving it the ability to launch its #crypto app @WisdomTreePrime in New York. https://t.co/hlIoQ9vNjs pic.twitter.com/kcRwmjdt9l
— Eleanor Terrett (@EleanorTerrett) March 22, 2024
Furthermore, it allows for the issue and trade of DFS-approved stablecoins, as well as the management of stablecoin reserves, through the newly founded WisdomTree Digital Trust Company, LLC. This action elevates WisdomTree to an elite league of only a few other digital asset trust companies with such a prestigious charter, cementing its leadership position in the industry’s drive toward blockchain integration.
Jonathan Steinberg, the Founder and CEO of WisdomTree, expressed his enthusiasm, stating:
“This approval not only allows us to participate in New York’s rapidly growing digital asset marketplace today, but equips WisdomTree to lead in the industry evolution of tomorrow.”
Initially, WisdomTree Digital Trust Company will offer products to consumers through the WisdomTree Prime ecosystem. Additionally, WisdomTree Digital Trust Company will specifically issue the WisdomTree Gold Token and WisdomTree Dollar Token, both of which are available in WisdomTree Prime, and will hold reserves for those assets under a DFS-approved structure.
This charter also prepares the path for WisdomTree to offer WisdomTree Prime to retail consumers in New York, which is much anticipated in the coming weeks. WisdomTree Prime provides a full ecosystem that includes saving, spending, and investing. WisdomTree Prime is currently available for download on the Apple App Store and Google Play.
The company’s trust charter and fiduciary powers enable it to provide increased protection to its consumers, including asset safekeeping. Furthermore, WisdomTree intends to use the WisdomTree Digital Trust Company to provide products and services to institutions and commercial customers in the future.
WisdomTree’s Bitcoin ETF
In addition to its entry into blockchain financial services, WisdomTree made headlines earlier this year when the US Securities and Exchange Commission (SEC) approved its trading of Bitcoin Exchange-Traded Fund (ETF).
This ETF, known as the WisdomTree Bitcoin Fund (BTCW), made its debut on the Cboe BZX Exchange and provides US investors with exposure to variations in the price of Bitcoin. BTCW is notable for having no expense ratio for the first $1.0 billion of assets.
The acceptance of the spot Bitcoin ETFs, despite prior rejections, is a result of the present regulatory environment, indicating a change in the SEC’s position on crypto investment products.
Overall, WisdomTree’s entry into the crypto and blockchain space is a noteworthy development that highlights the increasing overlap between traditional finance and the ecosystem for digital assets.
