World Liberty Financial, a venture associated with the Trump family, has taken a significant step toward expanding its influence in the cryptocurrency space by applying for a national banking charter. The application was submitted on January 7 to the U.S. Office of the Comptroller of the Currency (OCC). This move aims to establish the World Liberty Trust Company (WLTC), which intends to issue the USD1 stablecoin, pegged to the U.S. dollar.
Upon receiving approval from the OCC, the trust company will not only issue the USD1 stablecoin but also provide custody solutions and facilitate stablecoin conversion services. This development is designed to streamline the process for holders of other stablecoins who wish to transition to USD1. Furthermore, customers will have the ability to mint and redeem the USD1 stablecoin directly.
According to statements from Zach Witkoff, co-founder of World Liberty Financial, the application for the national charter represents a pivotal evolution for the company. Witkoff noted that institutional adoption of the USD1 stablecoin has seen a notable increase, with its market capitalization escalating from $128 million to $3.37 billion over the past 6 to 8 months. “USD1 grew faster in its first year than any other stablecoin in history,” he emphasized. This growth has attracted institutional users for various financial operations, including cross-border payments and treasury functions.
The proposed trust bank intends to operate within the framework of the GENIUS Act and will implement strict anti-money laundering measures along with comprehensive sanctions screening. This filing places World Liberty Financial among a growing number of cryptocurrency firms pursuing federal trust bank charters. In December, the OCC granted conditional approvals to several notable digital asset companies, such as Circle and Ripple.
In addition to the national charter, World Liberty Financial plans to broaden its offerings with more financial products. Reports indicate that the company is looking to introduce real-world asset (RWA) products, marking its entry into the dynamic field of tokenization.
This strategic move by World Liberty Financial could reshape the landscape for stablecoins and their adoption in institutional settings, providing a regulated environment for digital asset transactions.
