tl;dr
WisdomTree Prime, a digital asset app by WisdomTree, is now live in New York, enabling users to save, spend, and invest in digital assets on-chain. The app offers access to bitcoin and Ethereum's ether, as well as dollar and gold tokens. This development comes amid pressure on CEO Jonathan Steinberg...
WisdomTree Prime, a digital asset app by WisdomTree, is now live in New York, enabling users to save, spend, and invest in digital assets on-chain. The app offers access to bitcoin and Ethereum's ether, as well as dollar and gold tokens.
This development comes amid pressure on CEO Jonathan Steinberg from shareholders due to the firm's strong push into decentralized finance. The firm's largest shareholder, Graham Tuckwell, has urged investors to vote against Steinberg's reappointment, citing the firm's distraction and lack of success in DeFi initiatives.
WisdomTree Prime, the firm's digital asset app, went live in New York on Thursday. The app allows users to save, spend and invest in digital assets on-chain. The move comes as one of the firm's biggest shareholders is urging investors to vote against the reappointment of CEO Jonathan Steinberg given his strong push into crypto.
WisdomTree's digital asset app, which offers users access to bitcoin (BTC) and Ethereum's ether (ETH) as well as dollar and gold tokens, on Thursday became available to customers in New York, even as CEO Jonathan Steinberg is under pressure from shareholders as a result of the investment company's push into decentralized finance.
The app, called WisdomTree Prime, launched in 21 states in July and received a charter to operate as a limited-purpose trust company under the New York Banking law in March. It lets users save, spend and invest in digital assets on-chain using the Stellar and Ethereum blockchains, which share ownership records.
"Since we first entered app stores in select states last summer, we have exhibited strong momentum across all fronts, including new digital fund launches, payment capabilities, and collaboration with regulators," Will Peck, head of digital assets at the firm, said in a press release.
WisdomTree's digital asset plans, however, have caused headaches for Steinberg, the Financial Times reported earlier this week. The firm's biggest shareholder, Graham Tuckwell, chair of ETFS Capital, doesn't agree with the firm's strong push into DeFi and has urged investors to vote against the reappointment of Steinberg.
According to the FT, Tuckwell told shareholders that Steinberg's initiatives in DeFi have been a "massive distraction and utterly unsuccessful." The Australian businessman became an important shareholder of WisdomTree in 2018 when the firm acquired the European arm of ETF Securities which Tuckwell founded in 2005.
WisdomTree has become a dominant TradFi player in crypto since 2019 when it launched its first bitcoin exchange-traded product on Swiss stock exchange SIX. In January of this year, it became one of the 10 issuers of a spot bitcoin ETF in the U.S. The fund has seen the least amount of inflows among all issuers at around $70 million, while others have collected billions of dollars of investors' money.
Disclaimer: The opinions expressed by the writers at Grow My Bag are their own and do not reflect the official stance of Grow My Bag. The content provided on our site is not intended as investment advice, and Grow My Bag is not an investment advisor. We do not endorse buying or selling any cryptocurrencies or digital assets mentioned in our articles. High-risk investments in Bitcoin, cryptocurrencies, and digital assets require thorough due diligence, and all transfers and trades made are at your own risk. Grow My Bag is not responsible for any potential losses and participates in affiliate marketing.