Trump-Backed World LibertyFi Close To Federal Trust Charter

Donald Trump-backed World Liberty Financial (@worldlibertyfi) $WLFI is reportedly close to securing a federal trust charter from the Office of the Comptroller of the Currency (OCC), according to sources cited by NOTUS who described approval as highly likely.

What the Charter Would Mean for USD1

The federal trust bank charter would allow World Liberty to issue and redeem its USD1 stablecoin, manage reserves, provide digital asset custody, and offer conversion and settlement services under a single federal regulator. This would also preempt many state regulations, enhance credibility with US institutions, and allow direct issuance without relying on third-party intermediaries. BitGo currently serves as its intermediary.

World Liberty Financial said WLTC Holdings LLC filed a de novo application with the OCC to establish World Liberty Trust Company National Association, a proposed national trust bank focused on stablecoin operations. WLTC plans to serve institutional customers, including cryptocurrency exchanges, market makers, and investment firms, and offer digital asset custody and conversion services that will enable holders of other stablecoins to shift to USD1.

USD1's Growing Footprint

USD1 has reached more than $3.3 billion in circulation within its first year, with usage concentrated among institutional customers for cross-border payments, settlement, and treasury. The stablecoin is fully backed by US dollars held at regulated depository institutions and funds invested in short-duration US Treasury obligations. The stablecoin operates across ten blockchain networks, including Ethereum, Solana, BNB Smart Chain, TRON, Aptos, and AB Core.

Stablecoins in the US are now generally governed under the GENIUS Act, signed into law by Trump, though the specific regulatory provisions are still being sorted out by federal agencies including the US Treasury Department.

The OCC approval, however, will likely fuel further political backlash over the current US president's potential conflicts of interest. The application has intensified concerns that the OCC's chartering framework is enabling politically connected crypto firms to obtain federal banking privileges, concerns magnified by the Trump family's direct financial stake in World Liberty Financial.

Sources:
The Block: World Liberty Financial nears OCC approval for federal trust charter
CoinDesk: Trump-linked World Liberty Financial applies for federal bank charter
Crypto Briefing: World Liberty Financial files OCC trust charter to launch USD1 stablecoin bank