The stablecoin sector has recently seen a new disruptor. World Liberty Financial, a company affiliated with Trump, has submitted an application to the Office of the Comptroller of the Currency (OCC) in the United States, planning to establish a national trust bank primarily for issuing and custody of their own USD1 stablecoin.

This development looks quite interesting. From the application documents, this bank will be regulated by federal authorities like traditional financial institutions, but will also fully leverage blockchain technology. In other words, they aim to combine "compliance" and "cryptocurrency" into one approach.

The current landscape of the stablecoin market is quite clear—USDT and USDC dominate the market share. USDT, in particular, is exaggerated, with a market cap reaching trillions. New entrants face significant challenges in carving out a share from these giants. However, USD1, with its trust bank license, does bring something different this time.

Why is this license so critical? Simply put, ordinary crypto companies issuing stablecoins are still seen as tech firms regardless of how much they hype. But if you have a legitimate banking license, you can operate as a "financial institution," which can attract institutional investors who are initially skeptical of cryptocurrencies. Especially conservative funds and corporate finance departments, seeing the "government endorsement + banking license" combo, will feel more secure.

However, public opinion is polarized on this matter. Some believe this is a major compliance breakthrough that could further standardize the stablecoin industry. Others are more pragmatic—thinking it might just be riding the wave, and whether it can truly succeed remains uncertain.

There are indeed several hurdles to overcome. First, OCC approval is not guaranteed 100%. Historically, many crypto-related bank applications have been rejected, and some took years to get a response. Whether this national trust bank license can actually be obtained remains to be seen.

Second, it might take longer than expected to challenge USDT’s current dominance. People already have high trust in USDT, and its ecosystem is very complete, making switching costs high. For USD1 to gain market share, having a compliant background alone might not be enough.

Third, the double-edged sword of celebrity influence. Trump himself is a controversial figure, and this identity could attract some supporters’ investments but also invite stricter regulatory scrutiny. Some regulators might adopt a more cautious attitude toward USD1 because of this association.

From a technical perspective, choosing a blockchain route for USD1 indicates a trend—stablecoins are no longer just pure financial tools but are evolving toward cross-chain and multi-ecosystem development. This is actually positive for the entire stablecoin sector, as it can promote product innovation and market competition.

But we must also be realistic. The core of stablecoins is trust. No matter how advanced your technology or how solid your license, ultimately, it depends on users’ confidence in you. USDT has maintained its large market share not only because it was early but also because it has built a stable credit system over the years.

If USD1 can truly pass OCC approval, it will indeed become a new variable in the stablecoin market. However, whether it can threaten the existing landscape remains to be seen over time. The market may see multiple mainstream stablecoins coexisting—similar to how multiple major banks operate in traditional finance—which from a competitive standpoint is actually healthy.

In summary: USD1’s move reflects a new direction of integration between cryptocurrency and traditional finance. Its success depends on three factors—regulatory approval, market acceptance, and the project team’s long-term operation. It’s too early to draw conclusions now; more insights will come in the coming months.