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WisdomTree (WT) Obtains Trust Company Charter From New York DFS
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WisdomTree Inc. (WT - Free Report) has been granted a charter by the New York State Department of Financial Services (DFS) to operate as a limited-purpose trust company under the New York Banking Law. The charter enables the launch of WisdomTree Prime in the state.
The charter provides WisdomTree authorization in the digital assets landscape to serve customers under improved regulatory supervision. It authorizes WisdomTree to carry out fiduciary custody of digital assets, which include digital wallet services, to issue and exchange DFS-approved stablecoins and manage the stablecoin reserves. WT will be conducting these under the newly formed entity, WisdomTree Digital Trust Company, LLC.
The receipt of the charter makes WT one of the few digital asset trust companies that have been granted the same. It demonstrates the company’s adaptable approach, given the industry-wide shift to blockchain-enabled financial services.
Jonathan Steinberg, CEO and Founder of WisdomTree, said, “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 offer products to customers under the WisdomTree Prime ecosystem. It will issue WisdomTree Gold Token and the WisdomTree Dollar Token from WisdomTree Prime and maintain reserves for the assets under a DFS-approved framework. The charter will enable WT to offer New York retail customers accessibility to WisdomTree Prime, which will be launched in the upcoming weeks.
WisdomTree Prime provides an integrated ecosystem to save, spend and invest in enhancing financial services on blockchain networks. The trust company will be able to offer improvised protection to its customers, given the fiduciary powers and trust charter. Moreover, the company intends to extend its customer base to institutions and business customers going forward.
Will Peck, head of Digital Assets at WisdomTree and CEO of WisdomTree Digital Trust Company, LLC, said, “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.”
This initiative is in line with WT’s growth strategy to become a leader in financial innovation and lead the evolution of the industry by leveraging blockchain technology.
Over the past six months, WisdomTree shares have gained 26.6% compared with the industry's rally of 22.8%.
Expansion Efforts by Other Financial Services Firms
Recently, Franklin Resource Inc. (BEN - Free Report) launched its operations in Saudi Arabia after obtaining two licenses from the country's regulator. BEN obtained a “Managing Investments and Operating Funds” license and an “Advising” license from Saudi Arabia's Capital Market Authority.
The move comes at a time when Saudi Arabia seeks to draw more foreign businesses to open up offices through its regional headquarters program as part of its economic transformation initiative Vision 2030.
Similarly, The Bank of New York Mellon Corp. (BK - Free Report) announced a partnership expansion between its Investment Management business and alternative credit specialist CIFC. This will enhance product offerings across both public and private markets, particularly in the U.S. private credit.
This strategic move taken by BK is a consequence of the cyclical and secular growth trends being witnessed in the private credit market. Amid the rising global demand from investors, European institutions are still under-allocated.
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WisdomTree (WT) Obtains Trust Company Charter From New York DFS
WisdomTree Inc. (WT - Free Report) has been granted a charter by the New York State Department of Financial Services (DFS) to operate as a limited-purpose trust company under the New York Banking Law. The charter enables the launch of WisdomTree Prime in the state.
The charter provides WisdomTree authorization in the digital assets landscape to serve customers under improved regulatory supervision. It authorizes WisdomTree to carry out fiduciary custody of digital assets, which include digital wallet services, to issue and exchange DFS-approved stablecoins and manage the stablecoin reserves. WT will be conducting these under the newly formed entity, WisdomTree Digital Trust Company, LLC.
The receipt of the charter makes WT one of the few digital asset trust companies that have been granted the same. It demonstrates the company’s adaptable approach, given the industry-wide shift to blockchain-enabled financial services.
Jonathan Steinberg, CEO and Founder of WisdomTree, said, “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 offer products to customers under the WisdomTree Prime ecosystem. It will issue WisdomTree Gold Token and the WisdomTree Dollar Token from WisdomTree Prime and maintain reserves for the assets under a DFS-approved framework. The charter will enable WT to offer New York retail customers accessibility to WisdomTree Prime, which will be launched in the upcoming weeks.
WisdomTree Prime provides an integrated ecosystem to save, spend and invest in enhancing financial services on blockchain networks. The trust company will be able to offer improvised protection to its customers, given the fiduciary powers and trust charter. Moreover, the company intends to extend its customer base to institutions and business customers going forward.
Will Peck, head of Digital Assets at WisdomTree and CEO of WisdomTree Digital Trust Company, LLC, said, “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.”
This initiative is in line with WT’s growth strategy to become a leader in financial innovation and lead the evolution of the industry by leveraging blockchain technology.
Over the past six months, WisdomTree shares have gained 26.6% compared with the industry's rally of 22.8%.
Image Source: Zacks Investment Research
Currently, WT carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Expansion Efforts by Other Financial Services Firms
Recently, Franklin Resource Inc. (BEN - Free Report) launched its operations in Saudi Arabia after obtaining two licenses from the country's regulator. BEN obtained a “Managing Investments and Operating Funds” license and an “Advising” license from Saudi Arabia's Capital Market Authority.
The move comes at a time when Saudi Arabia seeks to draw more foreign businesses to open up offices through its regional headquarters program as part of its economic transformation initiative Vision 2030.
Similarly, The Bank of New York Mellon Corp. (BK - Free Report) announced a partnership expansion between its Investment Management business and alternative credit specialist CIFC. This will enhance product offerings across both public and private markets, particularly in the U.S. private credit.
This strategic move taken by BK is a consequence of the cyclical and secular growth trends being witnessed in the private credit market. Amid the rising global demand from investors, European institutions are still under-allocated.