Prominent asset manager, WisdomTree has received regulatory approval to provide virtual assets services in New York. According to an announcement made on Friday, the asset manager acquired a charter from the New York State Department of Financial Services (DFS). With the charter, the firm is set to kickstart a limited-purpose trust company under the New York Banking Law.
Meanwhile, the regulatory approval is an avenue for the asset manager to achieve its plan of becoming a force to reckon with in the evolving digital asset space of New York. Don’t forget that WisdomTree is a leading asset manager that is well-known across the globe. As of December 2023, the firm recorded a remarkable height by surpassing $100 billion in total assets under management (AUM).
After receiving the approval, the firm will now launch a virtual assets-centric company known as WisdomTree Digital Trust Company. Likewise, the new license will help the company to build more products and attract new customers. Furthermore, the trust company charter has aided WisdomTree in launching its fintech mobile app, WisdomTree Prime.
On the mobile application, the firm will launch assets like the WisdomTree Gold Token and the WisdomTree Dollar Token. According to findings, the application is presently live on the Apple App Store and Google Play.
Hence, retail investors in New York can now download the application to explore some of the exclusive virtual assets products of WisdomTree Prime. Also, WisdomTree will offer virtual assets custody services. Some of these services are wallet services, issuance of regulated stablecoins, and management of stablecoin reserves.
How WisdomTree Intends to Remain in Compliance with the Regulations of the DFS
The New York State Department of Financial Services is a prominent regulator in the United States digital assets landscape. Over the years, the agency has continued to maintain its oversight function in the virtual assets landscape ensuring that customers are well protected. Gaining the approval implies that WisdomTree must operate within the provided guidelines of the regulator.
Understanding its compliance responsibility, WisdomTree revealed that it will only manage the reserves of assets that comply with the regulatory guidelines of the Department of Financial Services (DFS). It is worth mentioning that the DFS framework mandates that stablecoin issuers back their assets with reserves.
The regulation is designed to ensure that the market value of the reserves is equivalent to the value of the stablecoin units. Additionally, the regulations of the DFS also require stablecoin issuers to certify that the value of the token is pegged at a 1:1 exchange rate to the U.S. dollar.