World Liberty Financial has officially initiated the process to obtain a national trust banking charter, a…

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World Liberty Financial has officially initiated the process to obtain a national trust banking charter, a move aimed at deepening its integration with the federal financial system. The application was submitted by its subsidiary, WLTC Holdings, to the Office of the Comptroller of the Currency (OCC). This strategic filing is intended to accelerate the institutional adoption of the company’s USD1 stablecoin by providing a more robust regulatory framework for its operations. According to World Liberty CEO Zach Witkoff, institutional players are already utilizing USD1 for a variety of financial activities, including settlement, treasury operations, and cross-border payments.

The sought-after charter would allow World Liberty to manage the issuance, custody, and conversion of its stablecoin entirely in-house. Currently, the firm and many of its peers rely on third-party providers for these essential services. By obtaining a national trust charter, World Liberty intends to consolidate these functions under a single, highly regulated entity, creating what it describes as a full-stack offering. CEO Zach Witkoff noted that this consolidation is a key part of the company’s strategy to bring issuance and conversion together, ensuring a streamlined experience for institutions seeking regulated digital asset services.

Context

The filing by World Liberty Financial coincides with a period of notable regulatory activity within the Office of the Comptroller of the Currency (OCC). In December, the regulator issued five conditional approvals for banking charters to several major firms in the cryptocurrency and financial technology sectors. This group of approved entities includes Circle, Ripple, Fidelity Digital Assets, BitGo, and Paxos. These approvals indicate a broader willingness by the regulator to expand the reach of digital asset services into the traditional financial sector, provided they meet specific federal standards.

Jonathan Gould, the Comptroller of the Currency, has publicly supported the entry of new participants into the federal banking sector. He noted that such entrants are beneficial for consumers, the banking industry, and the overall economy. According to Gould, these new players provide access to innovative products and services while ensuring the banking system remains competitive, diverse, and dynamic. World Liberty’s application represents an attempt to join this growing list of regulated digital asset companies operating within the federal oversight of the OCC, reflecting a trend of modernizing the banking infrastructure through the inclusion of fintech and stablecoin providers.

Impact

If the OCC grants the national trust banking charter, the operational model for World Liberty Financial and its USD1 stablecoin would undergo significant changes. One of the most direct benefits for users would be the introduction of fee-free minting and redemption of USD1. The charter would also empower the entity to facilitate conversions between US dollars and USD1 directly. Furthermore, the firm would be authorized to provide custody services not only for USD1 but also for other stablecoins, effectively internalizing roles previously held by external providers.

The impact of this “full-stack” approach is expected to be felt most strongly in the institutional sector. By bringing issuance, custody, and conversion together under one regulated entity, World Liberty aims to reduce the friction and complexity often associated with using third-party providers for stablecoin operations. This move is designed to provide a more integrated service for treasury operations and cross-border settlements. By removing the need to rely on external providers for custody and conversion, the company hopes to offer a more efficient and transparent environment that meets the rigorous compliance requirements of institutional financial participants.

Outlook

The future of World Liberty Financial’s application is likely to be influenced by the high-profile nature of its founders. President Donald Trump is listed as a co-founder of the platform, along with his sons Eric, Barron, and Donald Trump Jr. This involvement has already drawn scrutiny from lawmakers, who have expressed concerns regarding potential conflicts of interest. These concerns have been heightened by external events, such as President Trump’s pardon of Binance founder Changpeng Zhao, which some observers have linked to deals potentially benefiting the World Liberty platform.

In response to these concerns, CEO Zach Witkoff explained that the company chose the structure of a trust specifically to mitigate potential conflicts of interest. Under this arrangement, President Trump and his family members will not serve as executives or participate in the day-to-day management and control of the business. As the OCC reviews the filing from WLTC Holdings, the regulatory body will have to balance the potential for financial innovation against the public and political scrutiny surrounding the company’s ownership. The final decision on the charter will be a significant indicator of how federal regulators manage the intersection of political figures and the burgeoning digital asset market.