Key Notes
- The World Liberty Trust Company (WLTC) will directly issue, custody, mint, and redeem its USD1 stablecoin under a regulated framework.
- The firm says institutional adoption of USD1 has accelerated sharply due to cross-border payments, settlement, and treasury operations.
- If approved, the trust bank would operate under the GENIUS Act with enhanced AML and sanctions controls.
Crypto firm World Liberty Financial, a Trump-family venture and closely linked to US President Donald Trump, applied for a national banking charter on Wednesday, Jan. 7. The latest report shows that they have submitted the national charter application to the US Office of the Comptroller (OCC) to establish the World Liberty Trust Company (WLTC).
If the OCC approves the Trust company, it would directly issue the USD1 stablecoin, a USD-pegged stablecoin linked to World Liberty Financial. The firm stated that it would also offer its own custody solutions as well as stablecoin conversion services. This will allow other stablecoin holders to easily move to USD1.
Besides, customers would also be able to mint and redeem USD1 stablecoin. “The trust company plans to serve institutional customers, including cryptocurrency exchanges, market makers, and investment firms,” noted World Liberty Financial.
World Liberty Financial Sees Sharp Uptick in USD1 Stablecoin Adoption
Zach Witkoff, the co-founder of World Liberty Financial, said that the application of the national charter will help the company to evolve further. After OCC approval, he would chair the trust company WLTC.
Witkoff also stated that the institutional adoption of USD1 is on the rise. In the past 6-8 months, the market cap of the USD1 stablecoin has surged from $128 million, all the way to now at $3.37 billion. Witkoff said:
“USD1 grew faster in its first year than any other stablecoin in history. Institutions are already using USD1 for cross-border payments, settlement, and treasury operations. A national trust charter will allow us to bring issuance, custody, and conversion together as a full-stack offering under one highly regulated entity.”
As per the proposal, the trust bank would operate under the GENIUS Act framework and implement enhanced anti-money laundering controls along with strong sanctions screening.
The filing places World Liberty Financial among a growing group of crypto firms seeking federal trust bank charters. In December, the Office of the Comptroller of the Currency (OCC) issued conditional approvals to several major digital asset companies, including Circle and Ripple.
In addition to the national bank charter, World Liberty Financial is looking to expand further with more financial products. Reportedly, the company is willing to launch RWA products, making a foray into the rapidly evolving tokenization industry.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.