WisdomTree receives crypto custody launch approval from NYDFS

WisdomTree has received a license from the NYDFS, allowing it to offer cryptocurrency-related products and services.

Under New York State banking laws, asset manager WisdomTree has received approval from the NYDFS to operate as a limited liability trust company.With the permission, a WisdomTree Digital Trust Company subsidiary can offer local clients services for storing cryptocurrencies, issuing stablecoins, and managing the latter’s reserves.

The license will allow the firm to launch a mobile application focused on personal finance, WisdomTree Prime. The company plans to offer dollar- and gold-pegged stablecoins WisdomTree Dollar Token and WisdomTree Gold Token, respectively.

NYDFS requires issuers of such assets to maintain the market value of reserves collateralized by at least the face value of the outstanding stablecoins. Other obligations include guarantees for the exchange of stablecoins.

In November 2023, JPMorgan subsidiary (Onyx Digital Assets), WisdomTree, Apollo, and several industry players, including Ava Labs, tested portfolio management using the Provenance and Avalanche app chains. The goal is to allow fund managers to tokenize, purchase, and rebalance RWA positions across multiple blockchains, standardizing transaction settlement processes.

WisdomTree also filed for a spot in Bitcoin ETF last year, following BlackRock. Before this, WisdomTree tried twice to register an ETF in the United States. The company applied in 2021 and 2022 and was rejected in both. The SEC explained its decision by saying that these exchange-traded products allegedly did not meet the standards for protecting the interests of investors.