WisdomTree gets green light for digital asset business in New York
Bitcoin exchange-traded fund (ETF) issuer WisdomTree has secured regulatory approval from the New York State Department of Financial Services (DFS) to operate its digital asset business in the state.
According to a March 22 statement, the asset management firm received a charter to operate as a limited-purpose trust company under the New York Banking Law. This charter enables the company to debut its WisdomTree Prime platform in the state.
Under the charter, WisdomTree can conduct fiduciary custody of digital assets, including offering digital wallet services, trading stablecoins, and managing stablecoin reserves, subject to DFS approval.
Jonathan Steinberg, the Founder and CEO of WisdomTree, emphasized that the license empowers the firm to provide innovative products while prioritizing customer protection. He added:
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.
New York has one of the strictest crypto regulatory systems in the United States, requiring crypto-related entities to register and be licensed with the authorities. Over the past year, the State has brought several legal actions against crypto platforms, including Gemini and now-defunct crypto lender Genesis, for violating its local laws.
WisdomTree Prime platform
The license also sets the stage for the launch of the WisdomTree Prime platform. This platform will offer a range of products within the WisdomTree Prime ecosystem, including the issuance of WisdomTree Gold and Dollar Tokens.
The mobile platform will grant users access to cryptocurrencies, digital gold, and various digital funds, providing an integrated ecosystem for saving, spending, and investing on-chain. The firms trust charter and fiduciary powers will help it to enhance customer protection, particularly regarding asset storage.
Will Peck, the CEO of the WisdomTree Digital Trust Company, expressed confidence in the companys product offering and responsible growth strategy.
The post WisdomTree gets green light for digital asset business in New York appeared first on CryptoSlate.
Read more: https://cryptoslate.com/wisdomtree-gets-green-light-for-digital-asset-business-in-new-york/
Text source: CryptoSlate
