Bitcoin spot ETF issuer WidsdomTree has received a Limited Purpose Trust Charter (Limited Purpose Trust Charter) from the New York State Department of Financial Services (DFS) and is expected to issue gold and U.S. dollar tokens under bank-level supervision.
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ToggleWisdomTree obtains limited purpose trust company license
WisdomTree has obtained a limited purpose trust company license granted by the New York State Department of Financial Services (DFS). It will be able to conduct trust custody of digital assets (including digital wallet services), issue and exchange DFS-approved stablecoins, and exchange them in the newly established entity WisdomTree Digital. Stablecoin reserves are managed under Trust Company, LLC.
New York State claims to be the strictest regulatory authority. Currently, there are only ten financial institutions that have obtained its limited purpose trust company license, including Coinbase and Fidelity. Another virtual currency license related to digital assets (managed according to BitLicense regulations) includes companies such as Paypal, Robinhood, Circle, Block and eToro.
Both of them can engage in digital asset-related business, but the articles of association of a limited purpose trust company can also exercise trust powers and directly possess a New York remittance license, with a wider business scope.
WisdomTree will issue gold and USD tokens
WisdomTree founder and CEO Jonathan Steinberg said:
This license is based on bank-level regulation and allows us to deliver innovative products without sacrificing customer protection. This approval not only allows us to participate in today's rapidly growing digital asset market in New York, but also positions WisdomTree to lead future industry development.
WisdomTree expects to issue WisdomTree Gold Tokens and USD Tokens and maintain reserves of these assets under a DFS-approved framework. The charter also allows WisdomTree to offer New York retail customers access to WisdomTree Prime, which will be launched in the coming weeks.
In addition, WisdomTree Prime is also available on the Apple App Store and Google Play.
