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WisdomTree

WisdomTree Digital Commodity Services, LLC

United States

Financial Assets

Fixed Income

Money Market Funds

Bonds (Mutual Fund or ETF)

Overview

Issuer DescriptionWisdomTree was established in 1985 with the aim of offering Exchange Traded Funds (ETFs) that prioritize both cost efficiency and potential for performance. WisdomTree recently has expanded its offerings to include tokenized assets through its platforms WisdomTree Prime and WisdomTree Connect. These platforms allow users to engage with a variety of tokenized products, such as digital funds and real-world assets (RWAs), on blockchain networks like Ethereum. The tokens issued by WisdomTree represent assets such as U.S. Treasuries, including short- and long-term Treasuries, with a focus on using tokenization to improve transparency and access, most notably FLTTX, WTSTX, WTTSX, TIPSX, WTLGX and WTGXX. These tokens are part of WisdomTree's broader strategy to create a seamless bridge between traditional finance and the evolving world of digital finance offering investors the ability to trade, store, and manage these assets on-chain. The tokens can be held directly by investors or managed through third-party custodians, enhancing both flexibility and security. WisdomTree advises investors to thoroughly understand the investment risks, fees, and objectives, recommending a review of the prospectus available through their website or upon request.

Personnel201-500

Year of Incorporation1985

Development StageMaturity Stage

Legal TypeRegular Corporation

Website

https://www.wisdomtree.eu/en-gb

White Paper-

Terms & Conditions

https://www.wisdomtree.com/terms

https://www.wisdomtree.com/privacy-policy

Blockchain Ecosystems

support@wisdomtreeprime.com

Phone(+1) 212-801-2080

Legality & Financial Audit

Legal EntityWisdomTree Digital Commodity Services, LLC

Registration Number5377419

Issuer IndustryInvestment & Asset Management

LEI254900D83DMRXZBABZ06

Audit

Yes

Finances AuditorEY

Finances Audit Date2024-02-23

Additional CommentEY has conducted an audit of the consolidated balance sheets of WisdomTree, Inc. and its subsidiaries as of December 31, 2023, and 2022, along with the related consolidated statements of operations, comprehensive income, changes in stockholders’ equity, and cash flows for the three years ending December 31, 2023. The audit concluded that the consolidated financial statements fairly present, in all material respects, the financial position of the Company as of the specified dates and the results of its operations and cash flows in accordance with U.S. generally accepted accounting principles (https://ir.wisdomtree.com/sec-filings/annual-reports/content/0001214659-24-003435/0001214659-24-003435.pdf)

Regulatory Compliance

National Regulation

Yes

Asset Regulation

Yes

Token Regulation

Yes

Additional CommentWisdomTree is primarily regulated by the U.S. Securities and Exchange Commission (SEC) for its Exchange-Traded Funds (ETFs), which are governed under the Investment Company Act of 1940. The firm also operates under the oversight of the Commodity Futures Trading Commission (CFTC) for derivative-related products and the Financial Industry Regulatory Authority (FINRA) for broker-dealer activities. Globally, it operates under European (UCITS, MiCA) and UK (FCA) regulations.

Additional CommentWisdomTree operates a series of the WisdomTree Digital Trust (the “Trust”). The Trust was organized as a Delaware statutory trust on April 19, 2021, and has multiple series or portfolios. The Trust is an open-end management investment company, registered under the 1940 Act. The Fund is “diversified” within the meaning of the 1940 Act. The offering of the Trust’s shares is registered under the Securities Act of 1933, as amended. The securities purchased by the Fund are subject to the quality, diversification, and other requirements of Rule 2a-7 under 1940 Act, and other rules adopted by the SEC.

Additional CommentTokens issued by WisdomTree represent fund shares and are facilitated through its digital platform, WisdomTree Connect. These tokens are managed by WisdomTree Securities, Inc. (WTS), a broker-dealer registered with the SEC and a member of FINRA. Although the tokens are not subject to a specific token-focused regulatory framework, they are classified as securities and must comply with existing U.S. securities laws, including SEC and FINRA regulations governing the issuance, trading, and reporting of fund shares.

KYC/AML Information

KYC/AML Process

Yes

KYC/AML ProviderIn-house Service

Additional CommentPotential investors must complete traditional KYC processes as well as AML regulatory requirements to participate. Wallet screening is conducted for potential wallets onboarded through WisdomTree Connect. Upon successful completion of the onboarding process, an on-chain attestation is issued to the investor's wallet in the form of a non-transferable soulbound NFT. Only registered wallets with this attestation are authorized to participate in transactions.

Risk Metrics

Ongoing Monitoring And Risk Management

Transparency And Reporting

Disaster Recovery And Business Continuity

Continuous Management Training (Procedure Descriptions)

Additional Comment-

Location

Primary Location

CountryUSA

Stage / RegionNorth Carolina

Postal Code19808

CityWilmington