World Liberty Pursues US Banking License Amidst Trump’s Crypto Initiative

World Liberty Financial has taken a significant step by applying for a U.S. national banking charter, as the landscape for stablecoins transitions from a trading asset to a robust payment infrastructure.

Key Takeaways

World Liberty Financial has filed for a U.S. national banking charter to regulate its stablecoin, USD1.
USD1 has a market value of approximately $3.4 billion and has been involved in significant crypto transactions.
Trust banks, like World Liberty, operate under specific regulations that do not allow them to take deposits or make loans.
The move aligns with a more crypto-positive regulatory environment under President Trump, with previous approvals of charters for several crypto firms.
World Liberty intends to comply with federal regulations and address concerns regarding political influences related to the Trump family.

World Liberty

The company announced on Wednesday that World Liberty Trust has submitted a de novo application to the Office of the Comptroller of the Currency (OCC), the U.S. Treasury bureau responsible for chartering and supervising national banks. This application aims to further integrate its dollar-pegged stablecoin, USD1, within regulated frameworks.

If granted, this banking charter would empower the Trust to issue and safeguard its dollar-backed token, USD1, which was launched last year and has recently achieved a market value of approximately $3.4 billion. Notably, USD1 played a role in a recent significant crypto transaction, where a third-party investor utilized USD1 tokens to acquire a $2 billion stake in Binance.

Trust Charters Provide a Middle Ground Between Crypto and Banking

World Liberty has relied on established cryptocurrency infrastructure thus far. Currently, BitGo manages the custody of USD1 reserves, presenting the arrangement as a compliant partnership that aligns stablecoin issuance with conventional reserve oversight and reporting mechanisms.

This filing comes at a time when the regulatory environment in Washington has shifted towards a more crypto-friendly stance under President Donald Trump. It follows a series of charter approvals indicating that regulators are increasingly willing to bring more cryptocurrency enterprises under banking regulations.

In December, the OCC granted national trust bank charters to a number of crypto and digital asset companies, including BitGo, Fidelity Digital Assets, Circle, Ripple, and Paxos, thereby expanding access to tokenized financial services.

Trust banks operate in a specialized capacity, unlike full-service banks, as they typically do not accept deposits or offer loans. Nonetheless, this model presents opportunities for stablecoin issuers aiming to manage assets, alongside conversion and settlement services, without heavy reliance on third-party service providers.

Balancing Institutional Demand and Political Risks in Bank Charter Aspirations

World Liberty envisions its trust as an institutional asset, focusing on exchanges, market makers, and investment firms that require custody and stablecoin conversion services within a bank framework.

The firm has expressed its intention to comply with the GENIUS Act, a stablecoin legislation signed by Trump in July 2025, which establishes a federal structure for payment stablecoins. World Liberty has committed to adhering to anti-money laundering and sanctions screening protocols.

However, the political dimension has also re-entered discussions surrounding this initiative. Critics have raised concerns regarding potential conflicts of interest with a Trump-affiliated stablecoin operating within regulated financial systems. In response, World Liberty has asserted that it has designed the trust to mitigate such risks, clarifying that the Trump family possesses a non-voting interest and is not involved in the trust's daily operations.