Asset manager WisdomTree has received approval from the NYDFS to operate as a limited liability trust company under New York banking law.
With this approval, WisdomTree Digital Trust Company, a subsidiary, will be able to offer local clients services in cryptocurrency custody, stablecoin issuance, and reserve management.
The license will enable the firm to launch the personal finance-focused mobile application, WisdomTree Prime.
The company plans to offer stablecoins pegged to the dollar and gold, namely the WisdomTree Dollar Token and WisdomTree Gold Token.
According to NYDFS requirements, issuers of such assets must maintain the market value of reserves at least equal to the nominal value of the stablecoins in circulation. Other obligations include ensuring the exchangeability of these stablecoins.
Back in November 2023, JPMorgan’s subsidiary (Onyx Digital Assets), WisdomTree, and Apollo, along with several industry players including Ava Labs, tested investment portfolio management using Provenance and Avalanche appchains.