World Liberty Financial is planning to bring its stablecoin operations under federal oversight. The crypto platform, backed by President Trump’s family, filed for a World Liberty banking license this week through its subsidiary WLTC Holdings.
The company submitted an application to the Office of the Comptroller of the Currency seeking approval to establish World Liberty Trust Company. If approved, the national trust bank would handle everything from issuing USD1 tokens to providing custody services for institutional clients.
Why World Liberty Wants a Banking License
Right now, World Liberty relies on third-party providers like BitGo to handle its stablecoin operations. A World Liberty banking license would let the company bring all these services in-house under one regulated roof.
“Institutions are already using USD1 for cross-border payments, settlement, and treasury operations,” said Zach Witkoff, who’s set to lead the trust company. The charter would bundle issuance, custody, and conversion together as a complete package.
USD1 has grown to over $3.3 billion in circulation since launching in March 2025. That’s faster than any other stablecoin in its first year, according to the company. The token operates across ten blockchain networks, including Ethereum, Solana, and TRON.
What the Trust Bank Would Actually Do
The proposed trust bank has three main goals. First, it would issue and redeem USD1 tokens without charging fees at launch. Second, it would provide on-ramp and off-ramp services between regular dollars and USD1 at no initial cost. Third, it would offer custody and conversion services for USD1 and select other stablecoins at market rates.
Traditional banking services like deposits and loans won’t be part of the package. National trust charters focus on custody, settlement, and fiduciary work instead. They also don’t carry FDIC insurance.
The company plans to serve crypto exchanges, market makers, and investment firms. Holders of other stablecoins would also be able to convert their tokens into USD1 through the trust bank.
Part of a Bigger Industry Trend
World Liberty isn’t alone in chasing federal approval. The OCC handed out conditional charters to five digital asset companies in December 2025: Circle, Ripple, Fidelity Digital Assets, BitGo, and Paxos. Coinbase and Crypto.com have also applied.
Traditional banks aren’t thrilled about this development. Some worry that crypto firms are gaining federal legitimacy without taking on the full regulatory burden that regular banks face.
The World Liberty banking license application comes with scrutiny attached. Critics have raised concerns about potential conflicts of interest between President Trump’s pro-crypto policies and his family’s involvement in the industry. Trump is listed as co-founder emeritus, while his sons Donald Jr., Eric, and Barron are also named as co-founders.
Federal Oversight and Compliance Standards
The OCC will review World Liberty’s application using the same process applied to traditional bank charter requests. That means rigorous examination of the company’s plans, management, and compliance frameworks.
If approved, World Liberty Trust would operate under full federal supervision. The company says it will comply with the GENIUS Act, the first major crypto framework signed into US law. That includes strict anti-money laundering checks, sanctions screening, and cybersecurity standards.
Mack McCain, World Liberty’s general counsel, is expected to serve as trust officer. He noted that the OCC has supervised trust activities for over a century and that the framework provides banks and corporations with the regulatory clarity they need.
How USD1 Works?
USD1 is backed 1:1 by US dollars held at regulated banks and funds holding short-term Treasury obligations. The company publishes monthly reserve reports for transparency. BitGo, which currently serves as a partner, has supported USD1’s growth and plans to continue working with the company.
The stablecoin is available on major exchanges, including Binance and Coinbase. Recent trading pairs include BNB/USD1, ETH/USD1, and SOL/USD1 on Binance.
USD1’s Role in Digital Payment Networks
Stablecoins have become central to digital payments and transactions outside traditional banking rails. Unlike Bitcoin and other volatile cryptocurrencies, stablecoins aim to maintain a steady value by backing each token with real-world assets.
A national trust charter would give World Liberty direct access to payment networks under OCC supervision. The company believes this setup would encourage more institutional adoption of USD1 for treasury management and cross-border settlement.
The crypto industry has been pushing for clearer regulations in the US. The GENIUS Act represents Washington’s first major attempt to create a framework for stablecoins. World Liberty’s application tests how these new rules work in practice.
Whether the OCC approves the World Liberty banking license remains to be seen. The review process typically takes months and involves detailed scrutiny of every aspect of the proposed business.
What is World Liberty Financial applying for?
World Liberty Financial’s subsidiary WLTC Holdings filed for a national trust bank charter to issue, custody, and convert its USD1 stablecoin under federal supervision.
Who will the trust bank serve?
The trust bank plans to serve institutional clients, including cryptocurrency exchanges, market makers, investment firms, and companies that want to convert other stablecoins into USD1.
Is this the first crypto company to seek a banking charter?
No. The OCC approved conditional charters for Circle, Ripple, BitGo, Fidelity Digital Assets, and Paxos in December 2025. Coinbase and Crypto.com have also applied.
What concerns exist around this application?
Critics worry about potential conflicts of interest between President Trump’s crypto policies and his family’s business interests in World Liberty Financial, especially given recent pardons and business deals.
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