World Liberty Financial, known for its association with former President Donald Trump and his family, revealed this Wednesday that it has formally petitioned for a national banking license within the United States to support its operations surrounding a dollar-pegged stablecoin. The company, which has been gaining traction in the decentralized finance space, intends to strengthen its market presence by obtaining regulatory approval to operate a federally chartered trust bank devoted primarily to stablecoin services.
The application was submitted by WLTC Holdings LLC, a subsidiary of World Liberty Financial, to the Office of the Comptroller of the Currency (OCC). The proposed institution, to be called World Liberty Trust Company, National Association, would function as a national trust bank designed specifically to issue and handle stablecoins, as well as offer custody services for digital assets. This move reflects the company’s strategy to institutionalize its operations and cater to a clientele consisting of institutional investors, including cryptocurrency exchanges, market makers, and investment firms.
At present, the USD1 stablecoin managed by World Liberty Financial is valued at approximately $2.8 billion. By securing the bank charter, the firm seeks not only to issue and redeem USD1 tokens but also to facilitate conversion services that would allow holders of other stablecoins to convert their holdings into USD1 seamlessly. This approach essentially positions the trust to play a pivotal role in simplified stablecoin interoperability for institutional market participants.
World Liberty Financial underscored that the trust bank would be structured to ensure compliance with key regulatory frameworks, including the proposed GENIUS Act. Additionally, the entity will adhere strictly to anti-money laundering provisions, aiming to align its operations with federal oversight and reinforce transparency in the digital currency sphere.
Highlighting the significance of this regulatory milestone, Eric Trump, co-founder of World Liberty Financial and son of the former president, shared his enthusiasm by posting a bald eagle emoji on social media, a symbolic reference to the national bird of the United States and a representation of American sovereignty and pride.
This initiative follows similar regulatory progress with other cryptocurrency entities, notably Ripple, which has recently received a conditional go-ahead from the OCC to establish its own national trust bank designed for crypto operations, though it awaits final approval.
The Trump family maintains a prominent role within World Liberty Financial's enterprise structure. Former President Donald Trump holds the title of Co-Founder Emeritus, while his sons Eric, Donald Trump Jr., and Barron Trump serve as co-founders. Collectively, the family’s holdings amount to nearly 22.5 billion tokens of World Liberty Financial, currently valued at approximately $0.1709 each. This amounts to a stake valued near $3.84 billion, reflecting a significant financial interest in the company’s cryptocurrency venture.
Despite these advancements, the Trump family's engagement in the crypto industry has ignited political and regulatory scrutiny. Senator Elizabeth Warren, representing Massachusetts, has criticized their financial involvement, framing it as an issue of corruption due to the family's gains from the WLFI token. On a related note, financial analysts such as TD Cowen have flagged the potential interference their involvement may impose on crypto market legislative processes. Specifically, Democrats have pushed for legislative provisions aimed at barring senior government officials and their immediate families, including members of the Trump family, from owning or operating cryptocurrency businesses, which may complicate the passage of comprehensive crypto regulatory frameworks.
In terms of market response, World Liberty Financial’s token has seen modest movement, with prices recorded at $0.1709 at the time of writing, reflecting a slight decline of 0.70% over the previous 24 hours according to market data provided by Benzinga Pro.
As World Liberty Financial progresses with its national trust bank application and expands its stablecoin services under a formalized regulatory umbrella, the landscape of institutional cryptocurrency operations continues to evolve. The company’s pursuit to blend decentralized finance offerings with regulated banking structures marks an important intersection of innovation and compliance within the digital asset market.