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January 7, 2026.
World Liberty Financial, backed by Trump family members, announced its subsidiary WLTC Holdings LLC filed a de novo application with the U.S. Office of the Comptroller of the Currency (OCC) for a national trust bank charter.
The proposed World Liberty Trust Company, National Association (WLTC), focuses on stablecoin operations: issuing, redeeming, and custodying WLFI's USD1 stablecoin.
This enables direct federal oversight, boosting compliance in the expanding stablecoin sector.
Launched in 2025, USD1 has surpassed $3.3 billion in circulation in its first year, ranking among the fastest-growing stablecoins.
The application integrates crypto with traditional banking amid rising federal support for digital assets under the Trump administration.
Key Takeaways
- WLFI seeks OCC trust bank charter for USD1 issuance, redemption, and custody to ensure federal compliance.
- USD1 hit $3.3 billion circulation in year one, showing strong institutional uptake.
- Services feature direct conversions from stablecoins like USDT, cutting intermediaries.
- Approval integrates DeFi and banking, minimizing third-party needs.
- Initiative fits Trump-era policies, potentially boosting stablecoin innovation.
Background on World Liberty Financial and USD1
WLFI, co-founded in 2024 by Donald Trump Jr., Eric Trump, and associates, operates as a decentralized finance (DeFi) protocol offering crypto tools for retail and institutional users.
It gained traction through President Donald Trump's endorsement of crypto in his economic policies. The platform provides DeFi services like lending, borrowing, and yield farming via blockchain.
USD1, pegged 1:1 to the U.S. dollar and backed by Treasury bills and cash equivalents, supports seamless ecosystem transactions. Adopted by exchanges, market makers, and firms, it drives growth.
Stablecoins overall exceed $200 billion in supply, led by Tether (USDT) and Circle (USDC).
Previously, WLFI used third-party custodians for USD1. The charter seeks to internalize these, cutting external reliance and optimizing operations.
Details of the Bank Charter Application
The OCC application requests national trust bank status for WLTC under the National Bank Act. Trust banks handle fiduciary tasks like custody and issuance, not full banking.
Approval would allow direct USD1 issuance and redemption with federal-compliant reserves.
Targeting institutions like exchanges and firms, WLTC offers digital asset custody. It includes stablecoin transfers, swapping USDT or USDC to USD1 without intermediaries for lower fees and speed under OCC rules.
OCC review assesses capital, risk management, and AML protocols. WLFI aims for a "full-stack" setup integrating issuance, custody, and conversion.
Approvals take 6-18 months based on proposal complexity.
Regulatory and Market Implications
This aligns with U.S. crypto regulatory shifts. In December 2025, the Trump administration greenlit OCC charters for digital firms like BitGo, promoting innovation. The OCC oversees about 60 trust banks and supports fintech, as with Anchorage Digital.
For WLFI, chartering counters unregulated crypto critiques, reducing risks like past reserve issues. It provides payment network access, improving USD1's traditional finance links.
Analysts see it as legitimizing Trump-linked crypto amid conflict-of-interest scrutiny.
Success could precedent-set for issuers, spurring competition in the $150 billion stablecoin market.
Conclusion
WLFI's charter bid strategically embeds USD1 in U.S. regulated banking for efficiency and credibility, potentially transforming stablecoin frameworks upon approval.
Read Next:
- 2025 Stablecoin Year-End Report
- 2025 Stablecoin Spending Report
- Who Is Winning the Stablecoin Infrastructure Race?
FAQs:
1. What is WLFI's charter application for?
It requests OCC approval for a trust bank to manage USD1 under federal regulations.
2. Who founded World Liberty Financial?
Trump family members like Donald Trump Jr. and Eric Trump, focusing on DeFi.
3. How is USD1 unique among stablecoins?
Dollar-pegged, Treasury-backed, with institutional emphasis and rival conversions.
4. What will WLTC provide?
Digital asset custody and conversions from other stablecoins to USD1.
5. How long for charter approval?
OCC process spans 6-18 months, evaluating capital, risks, and AML.
Disclaimer:
This content is provided for informational and educational purposes only and does not constitute financial, investment, legal, or tax advice; no material herein should be interpreted as a recommendation, endorsement, or solicitation to buy or sell any financial instrument, and readers should conduct their own independent research or consult a qualified professional.
