WisdomTree provides the NYDFS charter for digital asset protection and stable coins

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Global financial company Wisdomtree today announced that it has been licensed by the New York State Department of Financial Services (NYDFS) to be chartered as a New York Limited Purpose Trust Company. This development allows WisdomTree to participate in digital asset activities, including Protection of digital assets and stable coin extraction.

We are excited to announce that @WisdomTreeFunds has received a charter from NYS DFS to operate as a fiduciary company.

This reinforces our commitment to innovation and empowers us to launch WisdomTree Prime in New York in the coming weeks.

Read more here:

— WisdomTree Prime™ (@WisdomTreePrime) March 22, 2024

According to a press release published on Friday, this prestigious charter will allow WisdomTree to securely protect digital assets, issue DF-authorized stablecoins, and manage Statcoin stores through it. brand new Entity, WisdomTree Digital Trust Company, LLC.

Wisdomtree Digital Trust Company offers products in the Wisdomtree Prime ecosystem, including Wisdomtree Gold Tokens and Wisdomtree Dollars. token, with reserves Maintained in a DFS-authorized framework. The charter gives WisdomTree the ability to serve New York's retail clients Access WisdomTree Prime.

Jonathan Steinberg, WisdomTree's founder and CEO, is confident in WisdomTree's ability to effectively regulate the digital asset industry through strong regulations ensuring consumer safety.

“The New York State Department of Financial Services is the primary regulator for businesses involved in the digital asset movement. This well-established trust company charter program—the predecessor of Digital Assets—is based on bank-level regulation, which allows us to offer innovative products without compromising customer protection,” he said. Steinberg said.

Will Peck, Head of Digital Assets at Wisdomtree and CEO of Wisdomtree Digital Trust Company; LLC, Emphasizes the high compliance standards of a New York limited purpose trust company that provides a leading platform for regulated products and services.

“We have a strong initial product offering and strong plans to grow. in a responsible way with this charter in New York and our other franchises across the country,” said Peck.

Some states have been created in recent years brand new Regulatory frameworks to address The growing popularity of crypto assets. These include limited purpose charters that allow financial institutions to offer crypto-related services when they are issued. A certain level Consumer protection through state control. An example of a limited bank charter is the New York Limited Purpose Trust Company Charter. Issued by New York State, it allows institutions to act as trustees for digital assets.

With the new regulatory victory, WisdomTree joins Levels Established players like Coinbase, Fidelity and Gemini. All these companies hold Chartered Limited Purpose Trust Company status, allowing them to act as trustees for the protection of digital assets under the Banking Act.

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