World Liberty Financial Seeks OCC Approval to Launch Trust Bank for USD1 Stablecoin

World Liberty Financial, a cryptocurrency firm backed by the family of U.S. President Donald Trump, has submitted an application to the Office of the Comptroller of the Currency for a national trust bank charter. The proposed entity, World Liberty Trust Company, will operate under federal supervision and focus on stablecoin services, including the issuance, custody, and conversion of USD1, a dollar-backed stablecoin launched in March 2025. The company has positioned this move as a step toward broader adoption and compliance in the digital asset space.

The proposed trust bank would enable full-stack operations for USD1, including on-ramp and off-ramp services. The company's co-founder, Zach Witkoff, stated that the application marks a significant evolution in the World Liberty Financial ecosystem, with USD1 having grown faster than any other stablecoin in history during its first year. The trust bank plans to serve institutional clients, including exchanges, market makers, and investment firms.

The application aligns with the recently passed GENIUS Act, which established a federal regulatory framework for stablecoins. The company emphasized compliance with this new legislation in its application to the OCC. The trust bank would be structured to ensure regulatory oversight and transparency in its operations.

Why Did This Happen?

World Liberty Financial's application comes as several major crypto firms have recently received conditional approval from the OCC for national trust bank charters. In December 2025, companies such as BitGo, Circle, and Ripple were granted conditional approvals, marking a significant step in integrating digital assets into the regulated banking system. The move by World Liberty Financial aligns with the broader industry trend of seeking federal regulatory clarity and access to banking infrastructure.

The company's USD1 stablecoin has reached over $3.3 billion in circulation in its first year, making it a notable player in the stablecoin market. By establishing a trust bank, World Liberty Financial aims to bring all aspects of USD1's operations—including issuance, custody, and conversion—under one regulated entity. The move is also seen as a strategic step to position the company for potential access to "skinny" master accounts at the Federal Reserve.

How Did Markets React?

The application was announced on January 7, 2026, and the company stated that the OCC had not immediately responded to inquiries. The move has not yet triggered significant market reactions, but it is part of a larger regulatory conversation about the future of stablecoins and their access to traditional financial infrastructure.

Analysts have noted that the approval of national trust bank charters for crypto firms has been controversial among traditional banks. Some institutions have raised concerns about potential risks to financial stability if crypto companies gain access to the Fed's payment systems. The Federal Reserve has also sought feedback on the prospect of creating "skinny" master accounts, which would grant limited access to the Fed's infrastructure.

What Are Analysts Watching Next?

Analysts are closely watching how the OCC will evaluate the application and whether it will follow the conditional approval model used for other crypto firms. The OCC has conditionally granted charters to several digital asset companies in recent months, but the process and criteria remain unclear. The outcome of World Liberty Financial's application could set a precedent for how the regulator approaches similar requests from other firms.

The approval or rejection of the trust bank charter will also influence the company's ability to scale USD1's operations and expand its services to institutional clients. If granted, the trust bank would allow World Liberty Financial to offer a full range of services—including on-ramp and off-ramp conversions—without fees at launch. The move could also enhance the company's credibility in the eyes of institutional investors and regulators.

The broader implications for the stablecoin sector depend on how the regulatory landscape evolves in the coming months. With the passage of the GENIUS Act and the ongoing debate over stablecoin access to the Fed's infrastructure, the sector is likely to see continued regulatory developments. The outcome of World Liberty Financial's application will be one of several indicators of how the industry is being integrated into the traditional financial system.

The application by World Liberty Financial highlights the increasing convergence between traditional banking and digital assets. As more crypto firms seek federal charters, the regulatory environment for stablecoins is expected to become more defined. The company's move is part of a larger industry trend toward regulatory clarity and institutional adoption.