Key notes
- The World Liberty Trust Company (WLTC) will directly issue, hold, mint and redeem its $1 stablecoin within a regulated framework.
- The company says institutional adoption of USD1 has accelerated significantly 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 business and closely linked to US President Donald Trump, filed for a national banking charter on Wednesday, January 7. The latest report shows that it has 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 will directly issue the USD1 stablecoin, a USD-pegged stablecoin tied to World Liberty Financial. The company said it will also offer its own custody solutions as well as stablecoin conversion services. This will allow other stablecoin holders to easily upgrade to $1.
Additionally, customers could also create and trade a 1 USD stablecoin. “The trust company plans to serve institutional clients, including cryptocurrency exchanges, market makers and investment companies,” noted World Liberty Financial.
World Liberty Financial Sees Strong Rise in Adoption of $1 Stablecoin
Zach Witkoff, co-founder of World Liberty Financial, said implementing the national charter will help the company scale further. After OCC approval, he would chair the WLTC trust company.
Witkoff also said that institutional adoption of USD1 is increasing. Over the last 6-8 months, the market cap of the stablecoin USD1 has grown from $128 million to $3.37 billion today. Witkoff said:
“USD1 has grown faster in its first year than any other stablecoin in history. Institutions are already using USD1 for cross-border payments, settlements and treasury operations. A national trust charter will allow us to consolidate issuance, custody and conversion into a comprehensive offering under a single, highly regulated entity.”
Under the proposal, the fiduciary bank would operate under the GENIUS Act and implement enhanced anti-money laundering controls as well as strict sanctions monitoring.
The filing places World Liberty Financial among a growing group of crypto companies seeking charters from federally trusted banks. 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 ready to launch RWA products, making a foray into the rapidly evolving tokenization sector.
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Bhushan is passionate about FinTech and has a good nose for understanding financial markets. His interest in economics and finance draws his attention to the new emerging markets of Blockchain technology and cryptocurrencies. He is continually in the process of learning and remains motivated by sharing his acquired knowledge. In his free time, he reads thriller novels and sometimes explores his culinary skills.
