Trump-Linked World Liberty Financial Applies for U.S. Bank Charter to Expand Stablecoin Operations

Introduction

World Liberty Financial, a cryptocurrency venture closely linked to U.S. President Donald Trump and his family, has submitted an application to the U.S. Office of the Comptroller of the Currency (OCC) to establish a national trust bank focused on stablecoin issuance, custody, and conversion services.

The move marks a major step in bringing the company’s digital-asset ecosystem — centered on the USD1 stablecoin — further into the regulated U.S. banking system, while aligning it with federal oversight and broader financial infrastructure.

What’s Happening: The Charter Application

World Liberty Financial’s subsidiary WLTC Holdings LLC filed a de novo application with the OCC on January 7, 2026, seeking to form a national trust bank called World Liberty Trust Company, National Association (WLTC).

Charter Focus

If approved, the trust bank would be empowered to:

• Issue and redeem USD1, a U.S. dollar-backed stablecoin launched in March 2025.
• Custody stablecoins and other digital assets under federal supervision.
• Offer stablecoin conversion services and on- and off-ramp facilities.
• Serve institutional clients such as crypto exchanges, market makers, and investment firms with regulated stablecoin infrastructure.

Unlike a full-service retail bank, a trust bank charter enables fiduciary and asset custodial operations but does not permit traditional deposit taking or retail lending, a structure similar to other crypto-linked banks like Anchorage Digital.

Why It Matters

Accelerating Stablecoin Regulation and Infrastructure

The application comes amid a broader federal push to integrate digital currencies into the national financial system under clearer regulatory frameworks. Stablecoins — cryptocurrencies pegged to fiat currencies like the U.S. dollar — have surged in adoption, with USD1 now boasting over $3.3 billion in circulation within its first year.

Securing a national trust charter would shift the issuance, custody, and conversion of USD1 from loosely regulated arrangements — often relying on third-party custodians — to direct federal oversight, strengthening compliance and oversight.

Part of Crypto’s Broader Banking Trend

World Liberty is not alone. In recent years, several major crypto and digital-asset firms — including Circle (USDC), Ripple (RLUSD), BitGo, Fidelity Digital Assets, and Paxos — have sought or received conditional charters that allow them to operate trust banks under federal supervision.

This reflects an industry-wide shift where crypto platforms increasingly seek regulated banking status to provide services traditionally held by banks, such as custody, issuance, and conversion — bridging digital assets and mainstream finance.

A Close Political and Financial Link

World Liberty Financial was launched in 2024, with Trump’s three sons — Donald Jr., Eric, and Barron Trump — listed as co-founders, and the president named as “co-founder emeritus” on corporate materials.

The political connection has drawn scrutiny, especially as this federal banking application will be adjudicated by the OCC — led by an appointee of President Trump — underscoring potential conflicts of interest flagged by critics.

What USD1 Brings to the Table

USD1 is designed as a 1:1 U.S. dollar-backed stablecoin, with reserves backed by cash, short-term government obligations, and deposits, targeting both institutional and enterprise use cases such as:

• Cross-border payments
• Treasury operations
• Settlement and liquidity tools

Institutional uptake has been cited by World Liberty executives as a key driver for deeper regulatory engagement, with the trust bank charter presented as a way to consolidate issuance, custody, and conversion capabilities under one regulated entity.

Regulatory and Policy Context

The application aligns with the GENIUS Act, a stablecoin regulatory framework passed in 2025 that laid out federal guidelines and standards for stablecoin issuance and oversight — a cornerstone of the Trump administration’s crypto policy.

While the OCC has yet to comment publicly on World Liberty’s application, the regulator has recently shown openness to granting charters to crypto-centric banks, signaling a potential shift in the landscape of digital-asset regulation in the United States.

Industry and Political Repercussions

The application has already sparked debate beyond financial markets:

• Political Oversight: Senator Elizabeth Warren released a statement warning of potential conflicts of interest if the charter is approved under a regulator appointed by the president linked to the applicant.
• Crypto Legitimization: Proponents argue that federal charters for stablecoin issuers provide much-needed transparency, oversight, and consumer protection.
• Market Impact: The move could encourage more crypto firms to seek federal charter status, accelerating institutional adoption of digital assets.

Conclusion

Trump-linked World Liberty Financial’s application for a U.S. national trust bank charter is a landmark moment at the intersection of crypto, finance, and politics. It highlights the evolving regulatory landscape for stablecoins and digital assets, the continuing push to bring crypto infrastructure under federal oversight, and the complex dynamics when political connections overlap with financial ventures. Approval of the charter could significantly reshape how stablecoins are issued, managed, and integrated into regulated financial systems — a shift watched closely by regulators, investors, and industry stakeholders alike.