World Liberty Financial has initiated the process of obtaining a US national banking charter to enhance the regulatory framework surrounding its dollar-linked stablecoin, USD1. This move represents a significant shift as stablecoins evolve from mere trading instruments into essential components of payment infrastructure.
The application was submitted to the Office of the Comptroller of the Currency (OCC), the division of the Treasury responsible for chartering and supervising national banks. If granted, this charter would allow World Liberty Trust to issue and manage USD1, which has already garnered a market capitalization of approximately $3.4 billion. Notably, USD1 has played a role in high-profile crypto transactions, including a substantial investment in Binance.
World Liberty Financial has relied on established crypto services, notably partnering with BitGo for the custody of USD1 reserves. This arrangement aims to ensure compliance through traditional reserve management practices, thereby aligning stablecoin issuance with regulatory standards.
The timing of this filing coincides with a more favorable political climate for cryptocurrency under the administration of former President Donald Trump. Recently, the OCC has shown a willingness to grant charters to various crypto firms, signaling an openness to integrate more digital asset businesses into a bank-like regulatory environment. Firms such as BitGo, Fidelity Digital Assets, Circle, Ripple, and Paxos have all received national trust bank charters, creating a more structured pathway for tokenized finance.
While trust banks operate under a more limited mandate than full-service banks—typically not accepting deposits or issuing loans—the model presents a viable opportunity for stablecoin issuers. It enables them to provide custody services and facilitate conversion and settlement without solely depending on external providers.
World Liberty”s trust is strategically designed to cater to institutional clients, including exchanges, market makers, and investment entities seeking compliant custody and conversion services for stablecoins. The company has committed to adhering to the GENIUS Act, a federal law signed by Trump that established a regulatory framework for payment stablecoins, ensuring compliance with anti-money laundering and sanctions protocols.
However, the venture is not without its controversies. Critics have raised concerns about potential conflicts of interest surrounding a stablecoin associated with a Trump-affiliated entity gaining traction in regulated financial systems. In response, World Liberty has emphasized that it structured the trust to minimize such risks, clarifying that the Trump family holds a non-voting stake and will not be involved in daily operations.
