WisdomTree receives NYDFS limited purpose trust company license to issue gold and USD stablecoins

The Bitcoin spot ETF issuer WisdomTree has been granted a Limited Purpose Trust Charter by the New York State Department of Financial Services (DFS), allowing for the issuance of gold and dollar-backed tokens under banking-grade supervision.

WisdomTree Obtains Limited Purpose Trust Company Charter

WisdomTree has been granted a Limited Purpose Trust Company charter by the New York State Department of Financial Services (DFS), allowing it to provide trust services for digital assets, including digital wallet services, issue and exchange stablecoins approved by DFS, and manage stablecoin reserves under the newly established entity WisdomTree Digital Trust Company, LLC.

New York State is known for having one of the strictest regulatory bodies, with only ten financial institutions currently holding the Limited Purpose Trust Company charter, including Coinbase and Fidelity. Another virtual currency license related to digital assets, governed by the BitLicense regulations, includes companies such as Paypal, Robinhood, Circle, Block, and eToro.

Both can engage in digital asset-related businesses, but the Limited Purpose Trust Company charter can also exercise trust powers and hold a New York money transmitter license directly, with a broader scope of operations.

WisdomTree to Issue Gold and Dollar Tokens

Jonathan Steinberg, Founder and CEO of WisdomTree, stated:

This charter is based on bank-level regulation, enabling us to offer 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 the industry's future development.

WisdomTree plans to issue WisdomTree Gold Tokens and Dollar Tokens while maintaining reserves for these assets under the framework approved by DFS. The charter also allows WisdomTree to provide access to WisdomTree Prime for New York retail customers, a service that will be launched in the coming weeks.

In addition, WisdomTree Prime will also be available on the Apple App Store and Google Play.