WisdomTree Securities Receives FINRA Membership Approval Enabling it to Facilitate Transactions in Blockchain-Enabled Funds on WisdomTree Prime™
WisdomTree, Inc. (NYSE: WT) has received FINRA membership approval for its subsidiary, WisdomTree Securities, Inc. This milestone enables the firm to facilitate transactions in blockchain-enabled funds through the upcoming WisdomTree Prime mobile application. The approval comes alongside the SEC's effective declaration of the WisdomTree Short-Term Treasury Digital Fund, marking significant progress in WisdomTree's digital strategy. The company aims to enhance investor experience through blockchain technology, emphasizing liquidity and transparency.
- FINRA membership allows WisdomTree Securities to facilitate transactions in blockchain-enabled funds.
- SEC approved the WisdomTree Short-Term Treasury Digital Fund, expanding its digital product offerings.
- WisdomTree aims to improve investor experience through enhanced liquidity and transparency.
- Blockchain technology is relatively new and untested, posing regulatory and operational risks.
- Cybersecurity risks could impact the Fund and its third-party service providers.
FINRA Membership Approval marks further momentum gained in the company’s digital strategy
NEW YORK, Nov. 22, 2022 (GLOBE NEWSWIRE) -- WisdomTree, Inc. (NYSE: WT), a global financial innovator, today announced that its wholly-owned subsidiary, WisdomTree Securities, Inc. (“WisdomTree Securities”) received membership approval as a broker-dealer from Financial Industry Regulatory Authority (FINRA), enabling WisdomTree Securities to facilitate transactions in blockchain-enabled funds offered in the WisdomTree Prime mobile application.
“FINRA membership approval is a key regulatory milestone, for us, leading up to the launch of WisdomTree Prime, enabling us to act as an intermediary for customers to transact in new blockchain-enabled funds,” said Jarrett Lilien, President and COO of WisdomTree. “As a regulation-forward company in blockchain-enabled finance focused on trust and security, this announcement is just another brick in the foundation we’re building to unlock access to the exciting opportunity within structured and transparent products of the future. As always, our priority is to provide investors with the best product structure – which is ETFs today, and we believe blockchain-enabled funds are the best product structure of tomorrow.”
This announcement adds to a growing list of key milestones, including the SEC declaring effective the WisdomTree Short-Term Treasury Digital Fund (WisdomTree’s first blockchain-enabled fund) and solidifying strategic partnerships with some of the industry’s most highly regarded banking, fintech and payments players.
The firm’s digital strategy is a natural extension and evolution of its ETF business, rooted in the belief that blockchain-enabled finance will improve the investor experience through enhanced liquidity, transparency and standardization.
For more information on the upcoming launch of WisdomTree Prime™, please visit: https://www.wisdomtreeprime.com/.
About WisdomTree
WisdomTree is a global financial innovator, offering a well-diversified suite of exchange-traded products (ETPs), models and solutions. We empower investors to shape their future and support financial professionals to better serve their clients and grow their businesses. WisdomTree is leveraging the latest financial infrastructure to create products that provide access, transparency and an enhanced user experience. Building on our heritage of innovation, we are also developing next-generation digital products and structures, including digital funds and tokenized assets, as well as our blockchain-native digital wallet, WisdomTree Prime™.
WisdomTree currently has approximately
For more information about WisdomTree and WisdomTree Prime™, visit: https://www.wisdomtree.com.
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WisdomTree® is the marketing name for WisdomTree, Inc. and its subsidiaries worldwide.
The FINRA approval status of the WisdomTree Securities Inc, broker-dealer is not an endorsement of any product offered by the member.
Carefully consider the investment objectives, risks, charges, and expenses of the Funds before investing. To obtain a prospectus containing this and other important information, please visit https://www.wisdomtreedigital.com for a prospectus. Read the prospectus carefully before investing.
WisdomTree Short-Term Treasury Digital Fund – Important Information
The WisdomTree Short-Term Treasury Digital Fund (the “Fund”) seeks to track the performance, before fees and expenses, of an index designed to measure the performance of obligations of the U.S. Treasury, which include bills, bonds and notes issued by the U.S. Treasury, all with maturities between 1 and 3 years. The Fund will not directly or indirectly invest in any assets that rely on blockchain technology, such as cryptocurrencies.
A blockchain is an open, distributed ledger that digitally records transactions in a verifiable and immutable (i.e., permanent) way using cryptography. A distributed ledger is a database in which data is stored in a decentralized manner. Cryptography is a method of storing and transmitting data in a particular form so that only those for whom it is intended can read and process it. A blockchain stores transaction data in “blocks” that are linked together to form a “chain”, and hence the name blockchain
There are risks associated with investing, including possible loss of principal. Because the Fund is new, it has no performance history. Blockchain technology is a relatively new and untested technology, with little regulation. Blockchain systems could be vulnerable to fraud, particularly if a significant minority of participants colluded to defraud the rest. Potential risks also include vulnerability to theft, or inaccessibility, and future regulatory developments could affect its viability. U.S. Treasury obligations may provide relatively lower returns than those of other securities. Changes to the financial condition or credit rating of the U.S. government may cause the value to decline. Fixed income securities are subject interest rate, credit, inflation, and reinvestment risks. As interest rates rise, the value of fixed-income securities fall.
Cybersecurity attacks affecting the Fund’s third-party service providers, the mobile phone application used to transact in Fund shares, blockchain network, or the issuers of securities in which the Fund invests may subject the Fund to many of the same risks associated with direct cybersecurity breaches.
WisdomTree Digital Funds are distributed by Foreside Fund Services, LLC. Foreside is not affiliated with WisdomTree nor any entity mentioned in the press release.
Cautionary Statement Regarding Forward-Looking Statements
This press release may contain a number of “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about WisdomTree’s ability to successfully implement its strategy relating to digital assets and blockchain-based financial services, including WisdomTree Prime™, and achieve its objectives. These forward-looking statements are based on WisdomTree’s management’s current expectations, estimates, projections and beliefs, as well as a number of assumptions concerning future events. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside WisdomTree’s management’s control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. Forward-looking statements included in this release speak only as of the date of this release. WisdomTree does not undertake any obligation to update its forward-looking statements to reflect events or circumstances after the date of this release except as may be required by the federal securities laws.
Contact Information
Media Relations
WisdomTree, Inc.
Jessica Zaloom
+1.917.267.3735
jzaloom@wisdomtree.com / wisdomtree@fullyvested.com
Investor Relations
WisdomTree, Inc.
Jeremy Campbell
+1.646.522.2602
Jeremy.Campbell@wisdomtree.com
FAQ
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