WisdomTree, the issuer of a Bitcoin exchange-traded fund (ETF), has successfully obtained regulatory approval from the New York State Department of Financial Services (DFS) to operate its digital asset business within the state. This approval comes in the form of a charter granted to the asset management firm to operate as a limited-purpose trust company under the New York Banking Law. This milestone enables WisdomTree to launch its WisdomTree Prime platform in New York, allowing them to offer a variety of digital asset services.
Focus on Innovation and Customer Protection
In a statement, Jonathan Steinberg, the Founder and CEO of WisdomTree, highlighted the significance of the license in empowering the firm to deliver innovative products while maintaining a strong focus on customer protection. He emphasized the reputation of the New York State Department of Financial Services as a leading regulator in the digital asset space and praised the bank-grade regulation framework on which the trust company charter program is built. This framework allows WisdomTree to introduce new products and services without compromising the safety and security of its customers’ assets.
Stringent Regulatory Environment in New York
New York is known for having one of the most stringent regulatory environments for crypto-related businesses in the United States. Companies operating in the digital asset space in the state are required to register and obtain licenses from the authorities. Over the past year, several legal actions have been taken against crypto platforms, such as Gemini and Genesis, for non-compliance with local regulations. As such, the approval granted to WisdomTree by the NYDFS is a significant achievement that sets the stage for the launch of the WisdomTree Prime platform and the introduction of new products within its ecosystem.
The upcoming launch of the WisdomTree Prime platform will offer users access to a wide range of products, including WisdomTree Gold and Dollar Tokens. This mobile platform aims to provide a seamless experience for users to engage with cryptocurrencies, digital gold, and various digital funds, creating an integrated ecosystem for saving, spending, and investing in digital assets. The trust charter and fiduciary powers granted to WisdomTree will play a crucial role in enhancing customer protection, particularly in terms of asset storage and security.
Will Peck, the CEO of the WisdomTree Digital Trust Company, expressed confidence in the company’s product offerings and responsible growth strategy. With the regulatory approval from the NYDFS in place, WisdomTree is well-positioned to expand its presence in the digital asset market, catering to the growing demand for innovative financial products while upholding the highest standards of customer protection and regulatory compliance.