Trump-linked World Liberty Applies for U.S. National Bank Charter

Source: CryptoTale Original Title: Trump-linked World Liberty Applies for U.S. National Bank Original Link: World Liberty Financial, the Trump family’s flagship crypto venture, has moved closer to regulated banking in the United States. One of its entities has applied for a national trust bank license with federal regulators.

The filing places World Liberty among crypto firms seeking deeper access to the traditional financial system. The application went to the Office of the Comptroller of the Currency on Wednesday. The OCC operates under the U.S. Treasury Department and oversees national banks. Approval would allow World Liberty Trust Company to operate as a federally regulated trust bank.

World Liberty Trust filed a de novo application through its parent, WLTC Holdings LLC. Zach Witkoff is listed as the proposed president and chairman of the trust company. Witkoff is the son of Steve Witkoff, a U.S. presidential envoy. He also co-founded World Liberty Financial with members of the Trump family.

President Donald Trump holds the title of co-founder emeritus at World Liberty Financial. His sons, Donald Trump Jr., Eric Trump, and Barron Trump appear as co-founders. Other founders include Zachary Folkman and Chase Herro. The company launched publicly in late 2024 during Trump’s presidency.

Stablecoin Ambitions and Trust Bank Plans

A trust bank charter would support World Liberty’s stablecoin strategy. The company launched USD1, a dollar-backed stablecoin, last year. USD1 currently has a market value of about $3.4 billion. A large portion of that supply entered circulation through a transaction with a certain head exchange.

A third-party investor used USD1 tokens to buy a $2 billion stake in a major exchange. The reserves backing USD1 currently sit with crypto custodian BitGo. A banking charter would allow World Liberty to issue and safeguard USD1 directly. It would also reduce reliance on third-party custodians and service providers.

Mack McCain, general counsel of World Liberty Financial, addressed the strategy. He said the charter would help the company launch products faster. McCain will serve as chief trust officer if regulators approve the application. He said the structure removes operational dependencies and improves execution speed.

World Liberty Trust plans to focus on institutional clients. These include crypto exchanges, market makers, and investment firms. The trust bank also plans to offer crypto custody services. It would also provide stablecoin conversion and settlement support.

Trust banks differ from full-service banks under U.S. law. They generally cannot accept deposits or issue loans. Still, trust banks hold a regulated status and federal oversight. That status appeals to crypto firms seeking legitimacy and scale.

Regulation, Politics, and Compliance Questions

World Liberty’s filing follows recent approvals for other crypto firms. In December, regulators approved trust bank charters for BitGo and Paxos. Fidelity Digital Assets and Ripple also received approvals. Those decisions signaled a more open regulatory stance toward crypto banking.

However, banking lobby groups have raised concerns. They argue that trust charters could increase systemic risk if misused. Critics also question political conflicts tied to World Liberty. Some point to President Trump’s involvement and past crypto decisions.

Trump pardoned a major exchange founder last year. That pardon drew scrutiny due to USD1’s use in an exchange-linked deal. World Liberty executives have addressed those concerns directly. Zach Witkoff said the trust company avoids conflicts by design.

He said Trump and his family hold nonvoting interests only. They will not serve as executives or manage daily operations. Witkoff said the structure separates politics from business control. He emphasized regulatory compliance and transparency.

World Liberty said the trust bank will follow the Genius Act. That stablecoin law took effect last summer under Trump’s administration. The company said it will meet anti-money-laundering obligations. It also pledged to follow sanctions screening and reporting rules.

The OCC will now review the application. The decision could shape World Liberty’s next phase in U.S. crypto finance.