WisdomTree has recently obtained a trust corporation charter from the New York State Department of Financial Services (NYDFS).
This development enables the company to introduce its cryptocurrency application, WisdomTreePrime, marking a pivotal advancement in its digital asset initiatives. The approval positions WisdomTree among a select group of digital asset trust companies to hold such a distinguished charter, underlining its commitment to integrating blockchain technology within the financial sector.
Read also: ETFS Capital Advocates for Strategic Overhaul at WisdomTree
In a post on X (formerly Twitter), Eleanor Terret highlighted that the charter granted by NYDFS authorizes WisdomTree to offer a broad range of fiduciary and custody services for digital assets. This includes the provision of digital wallet services, which are essential for the secure storage and management of cryptocurrencies and other digital assets.
🚨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
Moreover, the company is now permitted to issue and trade stablecoins approved by the DFS, alongside managing the reserves for these stablecoins through its newly established entity, WisdomTree Digital Trust Company, LLC. Initially, the focus will be on offering products through the WisdomTree Prime ecosystem, catering to consumer needs with a comprehensive suite that encompasses saving, spending, and investing functionalities.
WisdomTree’s Moves in Blockchain and Crypto
Additionally, WisdomTree has laid the groundwork for its future endeavors in the digital asset space with the introduction of the WisdomTree Gold Token and WisdomTree Dollar Token. These tokens are set to be integrated within the WisdomTree Prime platform, with reserves maintained under a structure approved by the DFS. The move not only extends WisdomTree’s product offerings but also prepares the company to roll out WisdomTree Prime to retail consumers in New York, an eagerly awaited development.
Consequently, the availability of WisdomTree Prime on major app platforms further underscores the company’s readiness to bridge traditional finance with the burgeoning digital asset ecosystem.
Launch of WisdomTree’s Bitcoin ETF
In a related advancement, WisdomTree has also ventured into the realm of Bitcoin Exchange-Traded Funds (ETFs), with the SEC’s approval of its Bitcoin ETF earlier this year. The ETF, known as the WisdomTree Bitcoin Fund (BTCW), is listed on the Cboe BZX Exchange, providing investors an opportunity to engage with Bitcoin’s price movements.
Notably, BTCW distinguishes itself by waiving the expense ratio for the initial $1.0 billion in assets, a move that reflects WisdomTree’s strategy to attract a broad investor base. This development, coupled with the recent regulatory nod for spot Bitcoin ETFs, signifies a transformative period in the regulatory landscape, offering new avenues for investment in digital assets.
