Trump family’s crypto business applies for U.S. banking license, a new signal of crypto assets entering the traditional financial system

According to the latest news, the entity under World Liberty Financial, World Liberty Trust, has submitted an application to the Office of the Comptroller of the Currency (OCC) for a new bank charter, seeking a nationwide trust bank license. This is not only an important milestone for the Trump family’s crypto business but also reflects the trend of the crypto industry moving from the fringe to the mainstream. If approved, it will allow the trust bank to directly issue and custody the USD1 stablecoin and gradually expand into crypto asset custody and stablecoin exchange services.

Strategic Significance of the Application

A Key Step from Crypto to Compliance

World Liberty Trust’s application for a national trust bank license essentially seeks a “ticket” into the traditional financial system. This license permits financial institutions to engage in regulated activities such as trust services and asset custody. For crypto businesses, this means operating within a clear legal framework rather than in the gray area.

The Supporting Role of USD1 Stablecoin

According to relevant information, USD1 is backed 100% by U.S. Treasuries and cash equivalents. This fully fiat-backed support contrasts sharply with traditional algorithmic stablecoins or partially collateralized stablecoins. If World Liberty Trust obtains a banking license, it can directly issue and custody USD1 within the U.S. banking system, significantly enhancing the credibility and liquidity of the stablecoin.

Market Reaction and Ecosystem Impact

Token Performance

Following the announcement, WLFI tokens experienced abnormal surges. According to the latest data, WLFI increased by 3.89% within one hour, triggering a price of $0.1736. Although trading volume declined (down 67% to $128.25 million), the market’s positive reaction to this news is evident.

Chain Reaction in the Ecosystem

According to relevant information, DeFi protocols such as Lista DAO have begun to incorporate USD1 as a core collateral. The progress of the bank license application will directly impact these protocols’ risk models and asset allocation strategies. If approved, USD1’s credibility as collateral will be further strengthened, potentially attracting more institutional clients.

Key Issues to Watch

Personal Perspective

This move signifies more than just World Liberty Financial itself; it sends an important signal: the crypto industry is shifting from a “disruptor” role to a “integrator” role. Applying for traditional financial licenses rather than opposing regulation could serve as a reference for other large crypto enterprises.

However, it’s important to note that there is still a considerable gap between approval and actual operation. OCC’s approval standards are strict, involving capital adequacy, risk management, anti-money laundering, and other dimensions. Even if approved, a comprehensive compliance system must be established before truly operating.

Summary

World Liberty Trust’s application for a U.S. banking license is a significant step for crypto assets entering the traditional financial system. If successful, it will provide a compliant foundation for USD1 stablecoin and could alter the risk profile of the entire stablecoin ecosystem. This also indicates that the crypto industry is gradually gaining recognition from traditional finance, although final approval from regulators is still needed. Future focus should be on OCC’s approval progress, specific compliance requirements, and the demonstration effect of this precedent on other crypto enterprises.