CoinTalk

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

In the cryptocurrency market, "volume" is the most cited metric after price. When Bitcoin rallies, analysts immediately ask, "Was there volume behind the move?"

But in crypto, the word "volume" can refer to two completely different things. Unlike the stock market, where all trades settle through a central clearinghouse, crypto activity is split between centralized exchanges and the blockchain itself.

To truly understand market sentiment, you must distinguish between Trading Volume and On-Chain Volume. Confusing the two can lead to a disastrous misreading of the market.

What is Trading Volume? (The Speculative Engine)

Trading volume (or Exchange Volume) refers to the total amount of an asset bought and sold on exchanges like BYDFi.

Crucially, the vast majority of this activity happens off-chain. When you buy Bitcoin on a centralized exchange Spot market, no transaction occurs on the Bitcoin blockchain. Instead, the exchange simply updates its internal database, debiting the seller and crediting the buyer.

• What it measures: Speculation, liquidity, and short-term interest.
• The Pro: It is fast and cheap.
• The Con: It can be manipulated. "Wash trading" (where a trader buys and sells to themselves to inflate numbers) is easier to hide in exchange volume figures than on the blockchain.

What is On-Chain Volume? (The Truth Layer)

On-chain volume refers to transactions that are validated and recorded on the blockchain ledger. This happens when a user withdraws funds from an exchange to a cold wallet, pays for a service, or interacts with a DeFi protocol.

Because every transaction incurs a network fee (gas), on-chain volume is rarely fake. It costs too much money to spam the network with high-value transactions just to create an illusion.

• What it measures: Economic utility, adoption, and "Whale" movements.
• The Signal: If price is dropping, but on-chain volume is spiking, it might indicate that big players are accumulating assets and moving them to cold storage (a bullish signal), rather than selling them.

The NVT Ratio: Valuing the Network

Sophisticated traders combine price and on-chain volume to determine if a coin is overvalued. This is known as the Network Value to Transactions (NVT) Ratio.

Think of it as the P/E (Price to Earnings) ratio of crypto.

• High NVT: The network value (Market Cap) is high, but the on-chain volume is low. This suggests the price is driven purely by speculation (bubble territory).
• Low NVT: The market cap is low relative to the massive amount of value moving through the network. This suggests the asset is undervalued.

Why You Need Both

Relying on just one metric gives you a blind spot.

• If you only look at Trading Volume, you might be fooled by a wash-trading bot on a low-cap altcoin.
• If you only look at On-Chain Volume, you will miss the massive price-moving events that happen on derivatives exchanges, where billions of dollars in volume can liquidate positions without a single satoshi moving on-chain.

Conclusion

To act like a professional analyst, you need to synthesize both data points. Use Trading Volume to gauge short-term price action and liquidity. Use On-Chain Volume to confirm the long-term health and adoption of the network.

When the two align—high speculation matched by high utility—that is when the sustainable bull runs happen.

Bitcoin Signals a New Breakout Phase as Institutional Momentum Builds

Bitcoin is once again at the center of global financial discussions, as prominent fund managers and market strategists suggest the world’s largest cryptocurrency is preparing for another major upward move. After months of consolidation and volatility, growing alignment between US regulators, Wall Street institutions, and blockchain innovation is reshaping the long-term outlook for Bitcoin.

According to leading voices in traditional finance, the current market structure does not reflect weakness but rather a reset that could lay the foundation for a powerful rally extending through 2026.

Bill Miller IV:  Bitcoin Looks Ready to Move Again

Bill Miller IV, chief investment officer at Miller Value Partners, believes Bitcoin’s technical and structural indicators are lining up for a renewed breakout. In a recent interview with CNBC, Miller explained that Bitcoin’s price behavior shows signs of building strength rather than exhaustion.

He highlighted that Bitcoin has formed a higher base compared to earlier cycles, a key signal often associated with sustained bullish momentum. From his perspective, the market is transitioning from speculative trading toward long-term capital allocation, a shift that fundamentally changes how Bitcoin should be valued.

Miller also emphasized that short-term declines should not distract investors from the broader trend. Bitcoin’s volatility, he noted, has always been part of its identity, and historical data shows that the asset has never experienced two consecutive losing years.

Regulatory Signals Are Turning Into Tailwinds

One of the most significant changes supporting Bitcoin’s outlook is the evolving regulatory narrative in the United States. Statements from US Securities and Exchange Commission Chair Paul Atkins acknowledging that capital markets are moving on-chain have been widely interpreted as a major shift in tone.

Rather than resisting blockchain innovation, regulators now appear more focused on integrating it into existing financial frameworks. This development reduces long-standing uncertainty and encourages institutional participation, which has historically been a major catalyst for large price movements in Bitcoin.

For many investors, regulatory clarity is not just a political issue but a signal that digital assets are becoming a permanent part of the global financial system.

Wall Street’s Deepening Commitment to Blockchain

Beyond regulation, Wall Street’s actions speak louder than words. Financial giants such as JPMorgan and other major institutions continue to build blockchain-based systems for payments, settlements, and tokenized assets.

This growing infrastructure suggests that Bitcoin and blockchain technology are no longer experimental tools but foundational components of future finance. As traditional financial firms allocate resources, talent, and capital to on-chain solutions, Bitcoin benefits from increased legitimacy and long-term demand.

According to Miller, this convergence of technology and finance represents a  whole new ballgame  compared to previous crypto cycles driven primarily by retail speculation.

Why the Recent Pullback Isn’t a Red Flag

At the time of writing, Bitcoin is trading near $93,700, roughly 25% below its all-time high of $126,080 reached in October. While this decline may appear significant on the surface, many analysts argue it is a healthy correction rather than a sign of structural weakness.

Zooming out, Bitcoin remains up year-to-date and continues to outperform most traditional assets over longer timeframes. Market observers point out that corrections often reset excessive leverage, making future rallies more sustainable and less fragile.

Tom Lee, chief investment officer at Fundstrat Capital, described the late-2025 market shock as a necessary reset that cleared unhealthy leverage from the system, allowing Bitcoin to enter 2026 in a stronger position.

Multiple Scenarios for Bitcoin’s Price in 2026

For the vast majority of cryptocurrency investors, the market is synonymous with volatility. You buy a token, hope it goes up 50% in a week, and fear it might drop 30% overnight. Even in the world of Decentralized Finance (DeFi), yields are rarely stable. A liquidity pool might offer 100% APY today and drop to 5% tomorrow as more participants enter.

This unpredictability is a major barrier for institutional investors and conservative savers. Enter Crypto Bonds.

By replicating one of the oldest and most trusted financial instruments—the bond—on the blockchain, developers are finally bringing "fixed income" to the digital asset space. But how exactly do they work when there is no central bank to issue them?

What is a Crypto Bond?

In the traditional financial world (TradFi), a bond is simply a loan. You give your money to a government or a corporation, and in exchange, they give you an IOU. They promise to pay back your principal investment on a specific date (maturity) plus regular interest payments (coupons) along the way.

A Crypto Bond functions on the same logic, but the "agreement" isn't a piece of paper signed by a banker; it is a Smart Contract living on the blockchain.

Instead of relying on the legal system to enforce repayment, crypto bonds rely on code and collateral. This democratizes the process. In the old world, only governments and massive corporations could issue bonds. In Web3, decentralized protocols (DAOs) and even individuals can issue debt to raise capital.

The Two Main Types of Crypto Bonds

To understand this market, you have to distinguish between the two major categories emerging in 2025.

1. Tokenized Real-World Assets (RWAs)
This is currently the hottest sector in crypto. Companies are taking traditional US Treasury Bills (which are considered the safest asset in the world) and "tokenizing" them.

• How it works: A custodian buys the actual US Treasury Bond and holds it in a regulated vault. They then issue a digital token that represents ownership of that bond.
• The Benefit: Investors can hold a stablecoin that earns the standard US interest rate (e.g., 5%), all while keeping their funds on the blockchain. This allows traders to park their stablecoins in a yield-bearing asset while waiting for a dip in the Spot market to buy Bitcoin or Ethereum.

2. DeFi Native Bonds
These are bonds issued by decentralized protocols to raise liquidity. The most famous example was pioneered by OlympusDAO (the "bonding" mechanism), where users traded their liquidity provider (LP) tokens in exchange for the protocol's native token at a discount.

• The Goal: This allows the protocol to "own" its liquidity rather than renting it from fickle yield farmers.
• The Risk: These are significantly riskier than RWAs because the payout depends on the success and solvency of the specific crypto project, not the US government.

The Mechanics: How to Buy and Trade

The user experience of buying a crypto bond is surprisingly similar to trading a token.

First, you generally need stablecoins (like USDT or USDC) or a major asset like Bitcoin. You can acquire these easily on a Spot exchange. Once you have the capital, you connect your wallet to a bond protocol.

When you purchase the bond, the smart contract takes your funds and mints a "Bond Token" in your wallet. This token represents your claim.

• Hold to Maturity: You can keep the token in your wallet until the maturity date, at which point you burn it to claim your principal plus interest.
• Secondary Market: Because the bond is a token, it is liquid. If you need cash urgently before the bond matures, you can sell the bond token to another trader on a decentralized exchange.

Why Choose Bonds Over Staking?

You might ask, "Why bother with bonds when I can just stake my Ethereum?" The answer is predictability.

Staking rewards fluctuate based on network activity. If few people are using the network, staking rewards drop. Bonds, however, lock in a Fixed APY. If you buy a bond yielding 8%, you get 8%, regardless of whether the market enters a bull run or a bear winter. This makes them excellent tools for hedging and financial planning.

The Risks You Must Know

While bonds are generally safer than trading meme coins, they are not risk-free.

1. Smart Contract Risk: If the code governing the bond has a bug, the funds could be exploited.
2. Default Risk: In DeFi bonds, if the borrower (the protocol) goes bankrupt or the value of their collateral collapses, they may default on the repayment.
3. Liquidity Risk: While you can sell bonds on a secondary market, there may not always be a buyer if the specific bond is obscure or unpopular.

Automated Strategies

For advanced traders, bonds can be part of a larger, automated strategy. You might use a Trading Bot to actively trade the volatility of the bond prices themselves (since bond prices move inversely to interest rates). This allows for sophisticated arbitrage opportunities between the DeFi bond market and the spot market.

Conclusion

Crypto bonds represent the maturation of the industry. They bridge the gap between the wild speculation of crypto and the stability of traditional finance. Whether you are looking for a safe harbor for your stablecoins via tokenized Treasuries or higher yields via protocol debt, bonds offer a way to diversify your portfolio beyond simple token holding.

Ready to start building a diversified crypto portfolio?

Frequently Asked Questions (FAQ)

Q: Are crypto bonds safer than liquidity mining?
A: Generally, yes. Crypto bonds usually offer fixed yields and defined terms, whereas liquidity mining yields are variable and suffer from "Impermanent Loss." However, smart contract risk applies to both.

Q: Can I buy crypto bonds with fiat currency?
A: Usually, no. You typically need to convert your fiat into stablecoins (like USDT or USDC) first. You can do this via a Spot purchase before interacting with a bond protocol.

Q: What happens if the bond issuer defaults?
A: In the case of tokenized Treasuries, the risk is low (US gov default). For DeFi protocols, if they default, you may lose your principal, similar to a corporate bankruptcy in the real world.

In the volatile world of cryptocurrency trading, the hardest decision isn't always when to buy—it’s knowing exactly when to get out. We have all been there: you sell too early and watch the price rocket another 20%, or you hold too long and watch your profits evaporate in a sudden crash.

Enter the Parabolic SAR (Stop and Reverse). Developed by the legendary J. Welles Wilder Jr.—the same mind behind the RSI—this indicator is designed to answer one specific question: Is the trend continuing, or is it about to flip?

For traders looking to capture the "meat" of a trend while protecting their capital, the Parabolic SAR is an essential tool in their charting arsenal.

What is the Parabolic SAR?

Visually, the Parabolic SAR is unique. Unlike moving averages that appear as wavy lines, the SAR appears as a series of dots placed either above or below the price candles.

The name "Stop and Reverse" literally describes its function. It assumes that a market is always moving (either up or down) and rarely stands still. The indicator trails the price action, creating a parabolic curve that tightens as the trend accelerates.

• Uptrend: The dots are below the price candles. This acts as a floor, supporting the price.
• Downtrend: The dots are above the price candles. This acts as a ceiling, suppressing the price.

When the price candles cross over the dots, a "reversal" signal is triggered, suggesting the trend has changed direction.

How to Trade the Signal

The beauty of the Parabolic SAR is its binary simplicity. It removes ambiguity from your decision-making process.