World Liberty Financial has taken a major regulatory step in the U.S. crypto sector, submitting an application to establish a federally supervised trust bank focused exclusively on stablecoins and digital asset custody.
World Liberty Seeks Federal Trust Bank Charter
A subsidiary of World Liberty Financial, WLTC Holdings LLC, filed a de novo application with the Office of the Comptroller of the Currency to create a national trust bank named World Liberty Trust Company, National Association (WLTC).
Unlike traditional banks, the proposed institution would not offer lending or consumer deposit services. Instead, it would operate as a specialized digital asset trust bank, bringing stablecoin issuance and custody under direct federal oversight.
Focus on Stablecoins and Institutional Custody
If approved, WLTC would serve as the regulated backbone for USD1, World Liberty Financial’s dollar-backed stablecoin. Launched in 2025, USD1 has already grown to more than $3.3 billion in circulation, with adoption driven largely by institutional clients, including exchanges and professional trading firms.
The proposed trust bank would support:
- Stablecoin issuance and redemption
- On-ramp and off-ramp services
- Digital asset custody for institutions
By operating under the OCC’s long-established trust bank framework, WLTC would be subject to independent reserve management, routine examinations, and federal compliance standards, aligning stablecoin operations with traditional financial oversight.
Political Ties Draw Attention
World Liberty Financial is a crypto venture co-founded by Eric Trump, Donald Trump Jr., and Barron Trump, with Donald Trump listed as co-founder emeritus. A Trump-affiliated business entity reportedly holds a significant ownership stake.
These connections have intensified scrutiny of the application, with critics raising conflict-of-interest concerns. World Liberty Financial has responded by emphasizing that placing USD1 under strict federal supervision is essential for credibility, transparency, and broader adoption of digital assets.
Part of a Broader Regulatory Trend
The OCC application places World Liberty alongside a growing list of crypto-native firms seeking federal banking status. Companies such as Circle, Ripple, and BitGo have pursued similar charters in recent years as the industry pushes toward regulatory clarity.
The OCC’s review process is expected to be rigorous, and approval is far from guaranteed. Still, the move signals a clear strategic shift: major stablecoin issuers are increasingly opting to integrate directly into the U.S. banking system, rather than operating at its edges.
If approved, World Liberty Trust Company would mark another milestone in the convergence of crypto infrastructure and federal financial regulation.
