WLFI Pursues U.S. Trust Bank Charter for USD1 Stablecoin

World Liberty Financial (WLFI), a Trump family-backed cryptocurrency venture, has submitted an application for a U.S. national trust bank charter with the Office of the Comptroller of the Currency (OCC). The proposed entity, World Liberty Trust Company, would operate under federal supervision to issue and custody the USD1 stablecoin.

The move comes after the OCC granted conditional trust bank charters to firms like Circle and Ripple in December 2025. These charters enable companies to operate within a regulated framework but do not allow deposit-taking. The approval of similar applications reflects growing regulatory openness toward crypto-native banking models.

WLFI aims to reduce dependency on third-party custodians like BitGo by centralizing its stablecoin operations under a single, federally regulated entity. The trust bank would offer services such as minting and redeeming USD1, custody for the stablecoin and other major stablecoins, and conversion between fiat and digital assets.

Why Did This Happen?

The application follows a significant regulatory shift in late 2025 that allowed crypto companies to apply for limited banking charters. The OCC's 2025 policy letters clarified that banks could engage in crypto-related activities, including riskless principal transactions, under federal supervision. This environment encourages innovation while maintaining compliance with existing laws.

World Liberty Trust Company would be structured to comply with the GENIUS Act, a federal law governing payment stablecoins. It would also operate under strict anti-money laundering and sanctions screening protocols. The proposed trust bank would issue USD1 backed by U.S. dollars and short-duration Treasury instruments, ensuring its stability and compliance with regulatory standards according to Moody's analysis.

What Are Analysts Watching?

Industry experts are closely observing how this move might influence the broader adoption of stablecoins in traditional finance. The trust bank model could serve as a regulated infrastructure for cross-border payments, settlements, and treasury operations.

However, the Trump family's deep involvement in WLFI raises concerns about potential conflicts of interest. President Donald Trump is listed as a co-founder of the company, alongside his sons and other partners. Critics argue that the company's regulatory applications could face heightened scrutiny due to these political ties.

WLFI has emphasized that the trust company structure is designed to minimize conflicts, with the Trump family holding a non-voting interest and not participating in day-to-day operations. The company also plans to allocate part of its treasury to boost USD1 liquidity, potentially increasing its adoption among institutions.

What's Next for WLFI?

The outcome of the application will depend on the OCC's evaluation of compliance, risk management, and regulatory alignment. If approved, World Liberty Trust Company could serve as a model for other crypto-native stablecoin issuers seeking federal oversight.

The Trump administration has shown support for the crypto industry, including the enactment of the GENIUS Act and the pardoning of key industry figures. However, any perceived conflicts of interest could complicate the regulatory approval process.

The market response has been mixed. While some analysts view the move as a positive step toward institutional adoption, others caution that the company's political ties may create regulatory headwinds. As of January 7, WLFI traded at approximately $0.1709, according to Benzinga data.

The broader crypto sector is also watching how this application affects the regulatory landscape. If successful, it could set a precedent for more crypto firms to seek federal charters and expand into traditional finance.

World Liberty Financial has positioned itself as a bridge between DeFi and TradFi, offering a stablecoin solution that aligns with federal regulatory standards. Whether the proposed trust bank becomes operational will have broader implications for the evolving crypto ecosystem.