WisdomTree wins NYDFS trust company charter

Zoltan Vardai12 hours agoWisdomTree wins NYDFS trust company charterThe charter will enable WisdomTree’s newly founded entity to offer crypto custody, stablecoin issuance, and stablecoin reserve management services.823 Total views5 Total sharesListen to article 0:00Breaking newsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksAsset manager WisdomTree has been granted a charter from the New York State Department of Financial Services (NYDFS) to operate as a limited-purpose trust company under New York Banking Law.

The trust company charter will enable the firm to launch its personal finance mobile app, WisdomTree Prime, under enhanced regulatory supervision in New York, the firm announced on March 22.

The new approval will enable WisdomTree plans to become a leading company in New York’s rapidly evolving digital asset space, said Jonathan Steinberg, the founder and CEO of WisdomTree:“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.”

The charter enables WisdomTree to offer digital asset custody services, including wallet services, issuing NYDFS-approved stablecoins, and managing stablecoin reserves under the newly formed entity, WisdomTree Digital Trust Company.

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With the new charter, WisdomTree Digital Trust will first launch the WisdomTree Gold Token and the WisdomTree Dollar Token within the mobile app.

The firm said it will maintain reserves for those assets that are in line with the framework provided by the NYDFS.

Under the NYDFS framework, stablecoin issuers are required to fully back the asset with reserves, meaning that the market value of the reserves is at least equal to the nominal value of the outstanding stablecoin units.

Issuers must also guarantee the redeemability of the stablecoins at a 1:1 exchange rate to the U.S. dollar.

WisdomTree surpassed $100 billion in total assets under management (AUM) in December 2023. The firm had $99.5 billion worth of AUM as of January 2024.

The banking charter also allows the asset manager to offer its personal finance app to retail investors in New York. The app is already available on the Apple App Store and Google Play.

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