Trump's crypto platform applies for federal banking license, USD1 stablecoin reaches new milestone

World Liberty Financial (WLFI) has submitted an application to the Office of the Comptroller of the Currency (OCC) seeking to establish a nationwide trust bank. The new bank, named World Liberty Trust Company, will focus on issuing, custody, and exchange services for stablecoins. If approved, it will become the first nationwide trust bank in the United States dedicated specifically to stablecoin operations, marking an important step toward the mainstream adoption of crypto assets.

Key Events

An entity under World Liberty Financial, WLTC Holdings LLC, has officially filed an application with the OCC to establish a nationwide trust bank. This move aims to create a more compliant and efficient issuance and custody framework for its USD1 stablecoin.

According to an official statement, the proposed World Liberty Trust Company will focus on providing stablecoin-related services to institutional clients, including cryptocurrency exchanges, market makers, and investment firms.

Trust Bank Structure

If approved, the World Liberty Trust Company will become a special purpose national trust bank. Its core operations will revolve around the USD1 stablecoin, offering a complete financial service chain. The bank plans to provide three core services: stablecoin issuance and redemption, USD and USD1 exchange services, and digital asset custody and conversion.

It is noteworthy that the bank will be designed specifically for stablecoin operations, avoiding traditional deposit activities to circumvent conventional banking capital requirements. This structure allows for greater flexibility to meet the demands of the crypto asset market.

Regulatory and Compliance Framework

This application comes at a time when the US crypto regulatory environment is becoming clearer. In July last year, Congress passed the “Genius Act,” aimed at strengthening stablecoin regulation.

The architecture of the World Liberty Trust Company is designed to fully comply with this legislation. All operations will adhere to strict anti-money laundering and sanctions screening procedures, employing advanced cybersecurity protocols. The OCC has over a century of experience regulating trust activities, and WLTC will operate within this framework. Mechanisms such as client asset segregation, independent reserve management, and periodic audits will be implemented.

Performance of USD1 Stablecoin

USD1 is a US dollar stablecoin issued by World Liberty Financial, maintaining a 1:1 peg with the dollar. Since its launch, it has become one of the fastest-growing stablecoins in the market. In its first year, the circulation of USD1 exceeded $3.3 billion, with growth rates surpassing any other stablecoin in history.

Currently, USD1 is listed on major trading platforms like Gate, with 24-hour trading volumes consistently between $6 billion and $9 billion. It supports ten blockchain networks, including Ethereum, Solana, and BNB Smart Chain, providing near-instant cross-border payment services for enterprise clients.

Market Impact and Industry Significance

The application by World Liberty Financial for a federal trust bank license could set a new regulatory compliance benchmark for the entire crypto industry. If successful, it will become the first nationwide trust bank in the US dedicated specifically to stablecoin operations. For USD1, this means increased regulatory transparency and institutional trust. The company states that the nationwide trust license will enable the issuance, custody, and conversion services of USD1 to be integrated under a highly regulated entity.

This move may also influence the strategies of other stablecoin issuers. As the regulatory framework becomes clearer, more crypto firms might seek similar compliance pathways, pushing the industry toward more standardized practices.

Political Background and Controversy

World Liberty Financial was co-founded by members of the Trump family, including Donald Trump Jr., Eric Trump, and Barron Trump. The company describes itself as a “decentralized financial tool inspired by Donald J. Trump.” This political background has attracted additional attention to the application. Supporters see it as a significant step toward legitimizing the crypto industry, while critics express concerns over potential conflicts of interest and regulatory favoritism.

Given Trump’s current political standing and influence, the OCC’s approval decision will be scrutinized intensely. The approval process could take months or even years, involving comprehensive regulatory reviews.

Future Outlook and Investment Perspective

From a market perspective, this move by World Liberty Financial could enhance USD1’s position in the stablecoin competition. Currently, USD1’s trading activity on Gate continues to rise, with 24-hour trading volumes increasing from $100-150 million at launch to the current $6-9 billion. If the trust bank license is granted, USD1 may attract more institutional investors, especially in cross-border payments, settlement, and fund management.

Investors should closely monitor the progress of the OCC’s review of this application and its broader implications for crypto regulation. It is also important to note that USD1’s design aims to maintain a 1:1 peg with the US dollar, and its price should always stay close to $1.

The table below summarizes key data for USD1 stablecoin:

A Turning Point for the Crypto Industry

The application by World Liberty Financial for a federal trust bank license marks a significant step toward integrating the crypto industry into the traditional financial system. This development is not only about a single company or stablecoin’s future but could establish new compliance standards for the entire industry. For retail investors, it signifies a more regulated and transparent stablecoin market. As the regulatory framework matures, crypto assets may attract greater participation from traditional financial institutions.

Regardless of the approval outcome, this application has already sparked important discussions at the intersection of crypto regulation, politics, and financial innovation, warranting ongoing industry and public attention.