World Liberty Financial, the Trump-backed crypto project, has taken a significant step toward institutional expansion by applying for a national trust bank charter through its subsidiary WLTC Holdings LLC.

(Sources: X)

World Liberty Financial

The proposed World Liberty Trust Company, National Association (WLTC) aims to issue, custody, and convert the USD1 stablecoin under federal oversight from the Office of the Comptroller of the Currency (OCC). This move positions World Liberty Financial as a bridge between traditional finance and DeFi, leveraging the Trump crypto stablecoin USD1 to serve exchanges, asset managers, and corporations. This analyst insight examines the application details, strategic implications, regulatory context, and industry pushback as of January 8, 2026.

Core Objectives of the Proposed Crypto National Trust Bank

The crypto national trust bank application focuses on three primary services for the USD1 stablecoin:

• Issuance and redemption without fees at launch.
• Fiat on- and off-ramps between USD and USD1 at no initial cost.
• Custody and conversion for USD1 and select other stablecoins at market rates.

WLTC would operate under full federal supervision, complying with the GENIUS Act and implementing strict AML, sanctions screening, and cybersecurity standards. Customer assets will remain segregated, with reserves independently managed and subject to regular OCC examinations.

• Issuer Statement: “A national trust charter will allow us to bring issuance, custody, and conversion together as a full-stack offering under one highly regulated entity,” said Zach Witkoff, proposed President and Chairman.
• Regulatory Alignment: Full federal oversight and no FDIC insurance, consistent with trust bank limitations.

Strategic Context: Trump-Backed Crypto Project and USD1 Growth

World Liberty Financial, prominently associated with President Donald Trump, has positioned USD1 as a rapidly growing stablecoin. The Trump crypto stablecoin reportedly achieved the fastest adoption in its first year of any stablecoin in history, with institutional use already emerging in cross-border payments, settlement, and treasury operations.

(Sources: X)

The national trust charter seeks to consolidate these services into a single, federally regulated entity—enhancing credibility and scalability for institutional clients nationwide.

• Growth Narrative: USD1’s rapid institutional uptake drives charter need.
• Nationwide Scope: Trust charter enables operations across all states without fragmented licensing.
• Custody Focus: Segregated assets and independent reserves address counterparty concerns.

Regulatory Landscape and Industry Pushback

The OCC has increasingly granted conditional charters to digital asset firms. In December 2025, five companies—Circle, Ripple, Fidelity Digital Assets, BitGo, and Paxos—received approvals under rigorous review standards. Comptroller Jonathan V. Gould emphasized that new entrants benefit consumers, banking, and the economy.

However, traditional banking groups have voiced concerns about the rise of crypto national trust banks:

• Two-Tier System: American Bankers Association and Independent Community Bankers of America argue crypto firms gain national charters while avoiding certain insured-bank requirements.
• Oversight Disparity: Potential consumer confusion and uneven regulatory burden.
• OCC Response: Consistent review process applied to all applicants.

Implications for the Trump-Backed Crypto Project

The World Liberty Financial charter application reflects a broader trend: DeFi projects seeking federal legitimacy to scale institutional services. Success would provide World Liberty Financial with a regulated platform for USD1, potentially accelerating adoption while addressing counterparty risk perceptions.

• Upside: Regulatory clarity attracts conservative allocators.
• Risks: Industry opposition could slow approval or impose stricter conditions.
• Market Positioning: Elevates Trump-backed crypto project from niche to mainstream contender.

In summary, World Liberty Financial’s pursuit of a national trust bank charter for its USD1 stablecoin represents a strategic evolution of the Trump-backed crypto project, aiming to consolidate issuance, custody, and conversion under federal oversight. While traditional banks raise concerns about a potential two-tier system, the OCC’s consistent review process and prior approvals suggest a path forward. This move could significantly enhance institutional confidence in Trump crypto stablecoin offerings, marking another milestone in the convergence of traditional finance and digital assets. Monitor OCC updates and industry responses for progress—always reference official regulatory filings and compliant sources when evaluating cryptocurrency-related developments.