World Liberty Financial Seeks Banking Authorization
(Bloomberg) — World Liberty Financial, a cryptocurrency venture co-founded by former President Donald Trump, is looking to obtain U.S. banking approval for one of its businesses to broaden its $1 stablecoin operations.
WLTC Holdings LLC has submitted a new application to the Office of the Comptroller of the Currency (OCC) aiming to establish World Liberty Trust, a proposed national trust bank focused on stablecoin offerings. This announcement was made in New York on Wednesday, with initial coverage by the Wall Street Journal.
World Liberty is the latest firm in the cryptocurrency space to seek a banking charter, a move that has raised concerns among traditional banks. They worry that such applications might provide federal legitimacy without a comprehensive regulatory framework typical of national banks. Currently, digital asset companies are exploring the edges of financial regulation by seeking narrow trust charters.
Last year, Coinbase Global, a well-known cryptocurrency exchange, also applied for banking approval. The OCC announced it would conditionally accept applications for authorization from five companies, including Ripple, Paxos, and BitGo.
World Liberty has listed the former president as an “honorary co-founder” on its website and raised capital by selling WLFI tokens. Initially intended as a non-transferable governance token, the WLFI token is now tradable. The $1 stablecoin, used for investments in the cryptocurrency exchange Binance, has a market cap of $3.4 billion, according to CoinGecko.
If granted, the charter would enable World Liberty Trust to cater to institutional clients, including virtual currency exchanges. It also plans to offer digital asset storage and services for converting other stablecoins to USD1.
“The National Trust Charter provides a clear federal framework for custody, reserve management, and trustee oversight,” stated Zach Witkoff, co-founder of World Liberty, in a message to Bloomberg. He noted that over time, this could encourage more institutional engagement, enhance consumer protection, and increase the use of regulated payments and settlements, always subject to regulatory approval.
President Trump has been a proponent of crypto-friendly initiatives and recently enacted a bill to regulate USD-backed stablecoins.
