World Liberty Financial applies for a license from the National Trust Bank of the United States to advance the issuance of USD1 stablecoin

Source: BlockMedia Original Title: Trump’s WLFI Applies for Bank License… Accelerating Digital Asset Integration into the Mainstream Original Link:

Background

World Liberty Financial announced that its corporate entity WLTC Holdings LLC has submitted an application for a National Trust Bank license to the U.S. Office of the Comptroller of the Currency(OCC). The purpose of this license application is to issue and custody USD1 stablecoins.

Significance of the National Trust Bank License

In the United States, obtaining a National Trust Bank license is a crucial regulatory milestone for digital asset companies. Once granted trust bank status, companies can custody client assets and provide services to institutional clients based on legal trustworthiness.

Through this application, World Liberty Financial plans to directly issue USD1 stablecoins and manage related reserves and digital assets within a regulated framework. USD1 is a stablecoin pegged 1:1 to the US dollar, intended for settlement and digital asset transaction infrastructure. The company states that the trust bank license will enhance transparency and stability.

Recently, the U.S. has been engaging in in-depth regulatory discussions around stablecoins, focusing on issuer capital requirements, reserve management, and custody standards. In this context, obtaining a trust bank license is seen as an important means to gain market trust.

Regulatory Attitudes of the Trump Administration

World Liberty’s license application coincides with a relatively friendly stance from the Trump administration toward digital asset companies entering banking. In December last year, the Trump administration approved bank license applications for multiple companies, including BitGo, a leading digital asset division of a major exchange, a payment platform, a blockchain enterprise, and an exchange.

However, there are also controversies surrounding trust bank licenses. Some financial lobbying groups argue that granting bank status to trust banks without deposit or loan functions could increase systemic risk and undermine the credibility of bank licenses.

Conflict of Interest Controversy and Responses

There have been reports raising concerns about political conflicts of interest surrounding World Liberty and USD1, linked to President Trump’s pardon of a founder of a certain exchange last year.

In response, Jack Witekoff, President of World Liberty Trust, stated, “The trust company was designed to avoid conflicts of interest.” He explained that President Trump and his family hold only non-voting shares and do not participate in management or daily decision-making.

Legal advisor to World Liberty Financial, Attorney Mike McCain, said that if the bank license is approved, it would reduce reliance on external service providers, thereby speeding up product development and deployment.

Future Business Plans

World Liberty plans to offer digital asset custody and stablecoin exchange services, primarily targeting digital asset exchanges, market makers, and institutional investors.

The company states that the trust bank will operate in accordance with anti-money laundering and sanctions screening requirements, and will design its structure in line with the provisions of the stablecoin legislation signed by President Trump last year.

Market Competition Trends

This move by World Liberty Financial indicates that competition in the stablecoin market is shifting from a technology-centric focus to one emphasizing regulatory compliance. Some digital asset companies have already solidified their operations through state-level trust licenses or bank licenses.

If the National Trust Bank license is approved, USD1 could become a model case connecting institutional finance with digital assets. However, the licensing review process may take several months or more, and approval and conditions depend on regulatory judgment.