Trump-Linked World Liberty Financial Seeks National Trust Bank Charter for USD1 Stablecoin

World Liberty Financial, a crypto venture linked to former U.S. President Donald Trump, has submitted a de novo application to the Office of the Comptroller of the Currency (OCC) for a national trust bank charter. The proposed entity, World Liberty Trust Company (WLTC), will focus on the issuance, custody, and redemption of USD1, a dollar-backed stablecoin launched in March 2025.

USD1 is described as fully backed by U.S. dollars held at regulated depository institutions and short-maturity U.S. Treasury instruments. The stablecoin has grown rapidly, reaching over $3.3 billion in circulation in its first year. It operates on ten blockchain networks, including Ethereum, Solana, and BNB Smart Chain according to reports.

The proposed trust bank aims to provide a fully regulated framework for USD1 operations. This includes issuing and redeeming the stablecoin, offering custody services for digital assets, and converting between U.S. dollars and USD1 without fees at launch.

Why Did This Happen?

World Liberty Financial’s move reflects a broader shift in the stablecoin market. Stablecoins are transitioning from speculative trading instruments to regulated settlement infrastructure. This shift is driven by evolving U.S. regulations, including the passage of the GENIUS Act in July 2025, which established a federal framework for stablecoin oversight.

WLTC’s application is also designed to address counterparty risk and regulatory friction. By operating under a federal charter, the trust bank will integrate stablecoin operations into the existing financial infrastructure, reducing dependency on third-party custodians.

How Did Markets React?

The application has drawn attention from financial institutions, regulators, and crypto market participants. Zach Witkoff, the proposed president and chairman of WLTC, stated that institutions are already using USD1 for cross-border payments, settlement, and treasury operations. A trust bank charter would enable WLTC to provide these services under one regulated entity.

The move also aligns with the broader trend of regulated financial institutions entering the crypto space. In December 2025, the OCC granted conditional approvals to Circle, Ripple, BitGo, Fidelity Digital Assets, and Paxos to establish national trust banks.

What Are Analysts Watching Next?

Analysts are closely monitoring how the application will shape the competitive landscape for stablecoin issuers. USD1’s rapid growth has positioned it as a strong contender in a market currently dominated by Tether's USDT and Circle's USDC. A trust bank charter could enhance its appeal to institutional users by providing regulatory clarity and operational transparency.

The success of WLTC’s application could also set a precedent for other stablecoin issuers seeking to integrate into the traditional financial system. It may influence the direction of future U.S. stablecoin legislation.

Investors are also watching for implications on the broader crypto market. As stablecoin adoption increases, regulatory clarity is becoming a key factor in market structure and institutional participation. The CLARITY Act, currently under consideration in the U.S. Senate, could further define the regulatory landscape for digital assets.

World Liberty Financial’s application reflects a strategic bet on the future of stablecoins as a core infrastructure component in both DeFi and TradFi. The outcomes of the OCC review and broader legislative developments will shape the trajectory of the USD1 stablecoin and the wider stablecoin market.