Trump’s World Liberty Financial Moves to Secure Banking Charter for USD1

Trump Family’s World Liberty Financial Seeks Banking Charter to Expand USD1 Stablecoin

The Trump family is stepping deeper into the world of crypto and traditional finance. World Liberty Financial, the family’s ambitious crypto platform, has applied for a national trust banking charter in the United States. This move is designed to strengthen the institutional adoption of its USD1 stablecoin and give the platform greater control over its operations.

Unlike many crypto projects that rely on third-party providers, World Liberty plans to handle issuance, custody, and conversion of USD1 internally, creating a fully integrated ecosystem under a regulated financial entity.

A Strategic Move Toward Institutional Adoption

World Liberty’s subsidiary, WLTC Holdings, submitted its application to the Office of the Comptroller of the Currency (OCC) on Wednesday. The charter would allow World Liberty to operate as a trust bank, offering fee-free minting and redemption of USD1, smooth conversions between US dollars and USD1, and custody services for other stablecoins.

CEO Zach Witkoff highlighted the growing interest from institutional clients. “Institutions are already using USD1 for cross-border payments, settlements, and treasury operations,  he said.  With a national trust charter, we can bring issuance, custody, and conversion together as a full-stack solution under one highly regulated entity.

This approach positions World Liberty as a major player in the intersection of crypto and traditional finance, providing services that rival conventional banks while leveraging blockchain technology.

OCC’s Growing Support for Crypto Banking

The timing of World Liberty’s application comes at a moment when the OCC is demonstrating a clear willingness to integrate crypto into traditional banking. In December, the regulator granted conditional banking charters to Circle, Ripple, Fidelity Digital Assets, BitGo, and Paxos.

Comptroller Jonathan Gould explained that new entrants like World Liberty are beneficial for both consumers and the financial system.  They provide access to new products, services, and sources of credit, ensuring a dynamic, competitive, and diverse banking system,  he said.

This regulatory openness signals that stablecoins like USD1 could play a central role in the future of cross-border payments and institutional finance, provided platforms meet the stringent oversight requirements of a trust bank.

Navigating Controversy and Potential Conflicts of Interest

Despite its promise, World Liberty’s path may not be entirely smooth. Questions have emerged regarding President Donald Trump’s involvement with the platform. Lawmakers have expressed concerns about potential conflicts of interest, particularly in light of Trump’s connections to the broader crypto sector.

The controversy intensified when Trump reportedly pardoned Binance founder Changpeng Zhao, a move critics linked to favorable deals for World Liberty. Yet, Witkoff reassured investors that the company’s structure as a trust bank is designed to prevent conflicts. Trump and his sons—Eric, Barron, and Donald Jr.—are co-founders but do not participate in day-to-day management or executive decisions.

What This Means for USD1 and the Crypto Industry

If approved, World Liberty’s banking charter could be a game-changer for USD1, enabling seamless, secure transactions for institutional clients. Fee-free minting and redemption, combined with custody capabilities for other stablecoins, would position USD1 as a credible alternative to other established stablecoins like USDC and USDT.

For the broader crypto industry, this move signals a continuing convergence of traditional finance and digital assets. Stablecoins backed by regulated entities could become a mainstream tool for corporate treasury operations, cross-border settlements, and financial innovation.

Looking Ahead

World Liberty’s application represents more than just a business decision—it reflects the growing ambition of the Trump family to influence both crypto and traditional finance. With institutional adoption on the rise and regulatory approval within reach, USD1 could soon play a pivotal role in reshaping the stablecoin landscape.

For investors and crypto enthusiasts, the launch of a regulated trust bank for USD1 is a development worth watching closely. As the boundaries between digital assets and conventional banking continue to blur, World Liberty could set a new standard for stablecoin-backed financial services.

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