WisdomTree, a global financial innovator, announced that it has been granted a charter from the New York State Department of Financial Services (DFS) to operate as a limited purpose trust company under the New York Banking Law. The trust company charter provides the most distinguished authorization in the digital assets landscape to serve customers under enhanced regulatory supervision and marks the ability to launch WisdomTree Prime in New York.

The trust company charter authorizes WisdomTree to perform fiduciary custody of digital assets, including digital wallet services, to issue and exchange DFS-approved stablecoins and manage stablecoin reserves under the newly formed entity, WisdomTree Digital Trust Company, LLC. WisdomTree joins only a few other digital asset trust companies with this charter, demonstrating its position at the helm of the industry’s shift to blockchain-enabled financial services.

“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,” said Jonathan Steinberg, WisdomTree Founder and CEO. “This approval not only allows us to participate in New York’s rapidly growing digital asset marketplace today, but equips WisdomTree to lead in the industry evolution of tomorrow.”

Initially, WisdomTree Digital Trust Company will provide products to customers as part of the WisdomTree Prime ecosystem. Specifically, WisdomTree Digital Trust Company will issue the WisdomTree Gold Token and the WisdomTree Dollar Token available in WisdomTree Prime and maintain reserves for those assets under a DFS-approved framework. This charter will also allow WisdomTree to offer New York retail customers access to WisdomTree Prime, set to be available in the coming weeks.

“Held to the highest compliance standards in the industry, a New York limited purpose trust company provides the leading platform to offer regulated tokenized products and services to WisdomTree’s retail and institutional customers,” said Will Peck, Head of Digital Assets at WisdomTree and CEO of WisdomTree Digital Trust Company, LLC. “We have a robust initial product offering and a strong plan to grow in a responsible manner with this charter in New York and through our other licenses across the nation.”

WisdomTree Prime offers one integrated ecosystem to save, spend, and invest – bringing the consumer’s financial life on-chain. With its trust charter and fiduciary powers, the trust company can offer enhanced protections to its customers, including with respect to its safekeeping of assets. Additionally, WisdomTree plans to use the WisdomTree Digital Trust Company to offer products and services to institutions and business customers in the future.

Source: WisdomTree

Denelle Dixon, chief executive of Stellar Development Foundation, said in an email: “We are really excited WisdomTree Prime now has the ability to operate in New York and that it is built on the Stellar network. Trusted financial institutions like WisdomTree are choosing the Stellar network to tokenize real world assets because it offers unparalleled control over the regulated assets it is offering and access to a global ecosystem of businesses hosted on the network. The Stellar blockchain ensures that transfers are secure, auditable, and traded near-instantly twenty-four hours a day, seven days a week.”