Trump family's crypto company applies for federal banking license, WLFI ecosystem compliance takes another step forward

January 7, 2026, the crypto company World Liberty Financial, closely affiliated with the Trump family, announced that its affiliated entity WLTC Holdings LLC has submitted an application to the U.S. Office of the Comptroller of the Currency (OCC) seeking to establish a national trust bank. If approved, this move will enable the company to directly issue, custody, and exchange its USD1 stablecoin under the federal regulatory framework, further consolidating its position in the compliant stablecoin market.

As of January 8, 2026, the market capitalization of USD1 stablecoin issued by World Liberty Financial has reached approximately $3.37 billion, making it the sixth-largest stablecoin by market cap.

Trump Family and Crypto Ambitions

The association between World Liberty Financial and former U.S. President Donald Trump and his family is one of the most discussed tags for the project. The company’s official website lists Trump as an “Honorary Co-Founder,” and states that his three sons—Donald Trump Jr., Eric Trump, and Barron Trump—are also co-founders. This close political connection has not only attracted market attention but also sparked discussions about potential conflicts of interest. In November 2025, Trump’s decision to pardon Binance founder Zhao Changpeng raised questions about the boundaries between Trump family businesses and policy.

However, regardless of political controversies, World Liberty Financial has grown into a significant player in the crypto space. Founded in 2024, the company launched its USD1 stablecoin pegged 1:1 to the US dollar in March 2025, and within just a year, its circulation exceeded $3.3 billion.

Key Details of the Federal Bank License Application

World Liberty Financial is applying for a “National Trust Bank” license, not a traditional “National Bank” license, a distinction crucial to understanding its business model. A trust bank license allows the company to provide asset custody, payment network access, and other services under federal regulation, but does not involve taking public deposits or traditional banking activities. According to the application documents, the proposed World Liberty Trust Company plans to offer three core services: minting and redemption of USD1, a fiat on/off-ramp between USD1 and USD, and custody and conversion services for USD1 and other stablecoins. The company plans to initially offer these services fee-free.

It is noteworthy that World Liberty Financial is not the first crypto company seeking such a license. In December 2025, the OCC granted conditional approvals to companies including Circle, Ripple, BitGo, Fidelity Digital Assets, and Paxos.

USD1 Stablecoin Market Performance and Competitive Position

USD1, as the core product of the World Liberty Financial ecosystem, has performed remarkably over the past year. As of January 8, 2026, its market cap reached about $3.37 billion, ranking sixth among stablecoins, approximately 1.8% of USDT’s total market cap and 4.48% of USDC’s.

On-chain distribution shows that USD1 issuance is mainly concentrated on BSC and Ethereum mainnet, with approximately $1.912 billion and $1.285 billion respectively, accounting for the vast majority of the total. In comparison, USD1 on the Solana network is about $137 million, with a significantly lower share.

In terms of trading volume, USD1 has seen substantial growth since its launch in March-April 2025. Its 24-hour trading volume surged from initial levels of $10-15 million to $60-90 million in early 2026, representing a 50-100x increase.

Potential Impact and Opportunities Post-License Approval

If World Liberty Financial’s trust bank license application is approved, it could bring multiple opportunities for its USD1 stablecoin. First, operating directly under the federal regulatory framework will boost institutional trust in USD1, attracting more institutional funds. Second, with a trust bank license, World Liberty Financial will be able to offer a one-stop stablecoin service to crypto exchanges, market makers, and investment firms, including issuance, custody, and conversion, potentially expanding USD1’s use cases and liquidity. Additionally, the trust bank structure will enable the company to better comply with anti-money laundering, sanctions screening, and cybersecurity requirements, implementing customer asset segregation, independent reserve management, and regular audits.

Regulatory Framework under the GENIUS Act

The application for a trust bank by World Liberty Financial comes at a critical time amid changes in the U.S. crypto regulatory environment. In 2025, Trump signed the “Guidance and Establishment of the U.S. Stablecoin National Innovation Act” (GENIUS Act), the first major crypto legislation passed by Congress. The GENIUS Act establishes a federal regulatory framework for stablecoins, requiring them to be pegged 1:1 to the dollar, with issuers holding equivalent USD or U.S. Treasury bonds as collateral for each stablecoin issued. However, the bill has also sparked controversy, especially over its prohibition of yield-bearing stablecoins, which critics say “stifles an entire category of innovative crypto products.”

World Liberty Financial explicitly states that the proposed trust bank will operate under the regulatory structure established by the GENIUS Act. This indicates that the company has prepared for compliance and aims to maximize its business potential within the existing regulatory framework.

WLFI and USD1 Performance on Gate Exchange

As a leading global crypto trading platform, Gate plays an important role in the WLFI ecosystem. Gate has listed WLFI tokens for trading, launched USD1-related products, and partnered with World Liberty Financial to introduce the USD1 points program.

As of January 8, 2026, WLFI trading price on Gate is approximately $0.2841, with an 8% increase in 24 hours, and a total market cap of about $2.15 billion. Analysis suggests WLFI could break through the $0.25-0.3 range, based on current trading volume and market activity. On the Gate platform, USD1 liquidity is prominent, with about $170 million held by Gate as of August 2025, ranking second among centralized exchanges. This large holding provides strong market depth for USD1, helping to reduce slippage and improve user experience.

Market Outlook and Potential Challenges

As the application for the federal trust bank license by World Liberty Financial advances, market sentiment remains cautiously optimistic. On one hand, obtaining the trust bank license could bring more institutional adoption opportunities for USD1. On the other hand, political connections could be a double-edged sword, making the company more susceptible to policy shifts.

From a technical analysis perspective, WLFI faces upward pressure at the $0.28 level, with resistance at $0.2895 and support at $0.2607. A successful break above $0.2895 could lead to further gains toward the $0.3066 resistance; failure to do so might see a retracement to around $0.2319.

Long-term, forecasts suggest WLFI could reach the $1 milestone by the end of 2030 if conditions are favorable and regulatory approval is obtained. If so, its price could potentially exceed $10 by 2040. While these predictions are optimistic, risks such as market volatility and regulatory changes must be considered.

As World Liberty Financial’s trust bank license application enters review, the crypto industry is closely watching this landmark event. Regardless of approval, this move signals that crypto enterprises are actively seeking deeper integration with traditional finance. On Gate, USD1 holdings have reached $170 million, offering investors low-slippage trading. Meanwhile, WLFI’s technical analysis indicates that breaking through the $0.2895 resistance could trigger a new upward trend. When political influence, technological innovation, and compliance efforts intertwine, the future landscape of the crypto market is quietly reshaping.