World Liberty, a Trump Crypto Venture, Pursues Bank Charter
World Liberty, a Trump Crypto Venture, Pursues Bank Charter
World Liberty Financial, the cryptocurrency company linked to the Trump family, has formally moved to enter the regulated banking space by submitting an application for a U.S. bank charter.
The filing was made by WLTC Holdings LLC, a subsidiary of World Liberty, to the Office of the Comptroller of the Currency (OCC) seeking authorization to create a national trust bank dedicated to digital asset and stablecoin operations.
If the charter is granted, the new institution would operate under the name World Liberty Trust Company, National Association, and would be authorized to provide trust banking services focused on the firm’s stablecoin offerings.
Until now, World Liberty’s business has centered largely on USD1 — a stablecoin designed to maintain a one-to-one peg with the U.S. dollar — and on building out services in the wider digital asset ecosystem.
Under the proposed trust bank structure, the company could broaden its services to include custody of digital assets, issuance and redemption of stablecoins, and other related activities traditionally associated with trust banks.
Unlike traditional commercial banks, national trust banks are not designed to take deposits or make loans, but they are permitted to oversee custody and fiduciary tasks, which aligns with World Liberty’s crypto-centric strategy.
World Liberty has said the move to seek a national charter is intended to provide a more robust and clearly defined federal regulatory framework for its activities, potentially encouraging broader participation from institutional customers.
Officials from the company have suggested that having a trust bank under federal supervision could boost confidence among larger players in the financial markets by cementing regulatory compliance for digital asset operations.
Expanding the Role of Stablecoins
In submitting the application, World Liberty joins a growing list of crypto firms that have pursued similar charters as the regulatory environment surrounding digital currencies continues to mature.
Several cryptocurrency companies have either applied for or secured national trust bank charters in recent years, reflecting a gradual shift toward regulatory integration rather than operating entirely outside the traditional financial system.
A national charter could allow World Liberty to bring many of its existing services in-house, reducing reliance on third-party providers for stablecoin issuance, custody, and compliance functions.
Company leaders believe this consolidation could streamline operations while also enhancing security standards for clients using the platform for payments, settlements, or asset storage.
Executives have also pointed to the importance of transparent reserve management for stablecoins, an area that has drawn heightened scrutiny from regulators and lawmakers in recent years.
By placing reserve oversight and custody functions under a federally regulated trust bank, World Liberty aims to address concerns about accountability and risk management in the stablecoin sector.
Regulatory Oversight and Institutional Confidence
The proposed trust bank would be positioned to facilitate stablecoin transactions, including the conversion between U.S. dollars and USD1, while also supporting custody services for digital assets held by institutional clients.
These services could appeal to cryptocurrency exchanges, fintech firms, asset managers, and corporate treasuries seeking regulated partners for digital currency operations.
World Liberty has promoted USD1 as a solution for cross-border payments and real-time settlement, particularly in scenarios where traditional banking systems may be slower or more costly.
Seeking a national charter reflects an effort to move these use cases squarely into the regulated financial system, a step many institutions view as essential before engaging at scale.
As a federally supervised trust bank, World Liberty Trust Company would be subject to ongoing examinations, capital requirements, and operational standards enforced by the OCC.
This level of oversight is intended to ensure customer protections, safeguard assets, and reduce systemic risks associated with digital financial products.
A Signal of Industry Maturation
The company’s application highlights a broader transformation within the cryptocurrency industry, as firms increasingly pursue legitimacy through regulatory compliance rather than confrontation.
In addition to its operational benefits, a trust charter could provide World Liberty with greater credibility as stablecoin legislation continues to take shape at the federal level.
Lawmakers have been working to establish clearer rules for stablecoin issuers, including requirements related to reserves, disclosures, and consumer protections.
World Liberty has stated that its business model is designed to align with these emerging standards, positioning the firm to adapt as new regulations come into force.
Approval of the charter would place World Liberty among a relatively small group of federally regulated digital asset trust banks, signaling a milestone for the company’s long-term strategy.
While the review process may take time, the application itself marks a significant step in World Liberty’s evolution from a crypto startup into a regulated financial institution.
The decision by regulators will be closely watched across both the crypto and traditional finance sectors as a measure of how quickly digital asset services are being absorbed into the mainstream banking system.
For World Liberty, the move underscores a broader ambition: to help bridge the gap between blockchain-based finance and established financial infrastructure under U.S. regulatory oversight.
