Trump-Backed World Liberty Financial (WLFI) Pursues National Trust Charter - A Game-Changer for Crypto Banking?

WLFI just filed for a national trust charter—and it's got the Trump stamp of approval. This isn't just another fintech startup; it's a direct challenge to the old guard.

The Trust Charter Play

Forget state-by-state licensing. A national trust charter cuts through the regulatory jungle. It lets WLFI operate across all 50 states from day one—custody, lending, payments, the whole suite. Traditional banks are watching from the sidelines, tied down by legacy systems and regional rulebooks.

Why This Matters for Crypto

This is the institutional on-ramp the digital asset space has been screaming for. A federally chartered, Trump-aligned entity could finally bridge the gap between Wall Street and blockchain. Think compliant custody for Bitcoin ETFs, seamless stablecoin transactions, and regulated DeFi access. It bypasses the patchwork of state laws that have stifled innovation for years.

The Political Edge

The Trump backing isn't just a name-drop. It signals a potential shift in the regulatory winds—a move towards frameworks that favor financial innovation over protectionism. It's a bet that the next administration will roll out the red carpet, not the red tape.

One cynical finance jab? The big banks will now spend millions lobbying against this, the same way they once fought against ATMs for being 'too disruptive.' Some things never change.

If WLFI pulls this off, it doesn't just get a banking license. It rewrites the rulebook for the entire digital economy. The race to become the crypto-native J.P. Morgan is officially on.

World Liberty Financial Aims For Regulatory Approval

Zach Witkoff, proposed president and chair of World Liberty Trust Company—a subsidiary that has applied for the charter—described this initiative as a pivotal evolution of the World Liberty Financial ecosystem. 

Securing a national trust charter WOULD enable World Liberty Financial to provide custodial banking services and gain access to national payment networks while operating under the supervision of the Office of the Comptroller of the Currency (OCC). 

However, this regulatory framework differs significantly from a national bank charter, which subjects a firm to stricter oversight due to its ability to offer consumer banking services.

Last year, the OCC granted conditional national trust charters to several cryptocurrency firms, allowing these companies to manage digital assets and other financial instruments without the need to obtain state-by-state approvals. 

This development was hailed as a historic move by the regulatory body and a substantial win for the digital asset sector, although it faced criticism from traditional banking institutions.

Traditional Banks Voice Concerns

World Liberty Financial is joining a growing list of digital asset businesses seeking regulatory approval, with the eventual goal of accessing “skinny” master accounts at the Federal Reserve (Fed). Such accounts would grant limited use of the Fed’s payments system, a critical asset in modern financial operations. 

Recently, the Federal Reserve sought public feedback on the potential establishment of these accounts, marking a significant step toward greater acceptance of digital assets in the mainstream financial ecosystem. 

Yet, Bitcoinist has reported for the past months that traditional banks have expressed apprehension that allowing crypto companies access to such facilities could compromise financial stability.

Among the companies previously awarded a charter are BitGo, which has acted as the custodian for World Liberty Financial’s USD1 stablecoin. The approval of World Liberty Financial’s application would enable the Trump-backed firm to manage its stablecoin more actively. 

BitGo CEO Mike Belshe lauded USD1’s growth, reporting that it surpassed $3.3 billion in its first year. He expressed enthusiasm for continuing their strategic partnership as World Liberty Trust Company becomes operational and USD1 embarks on its next growth phase.

At the time of writing, World Liberty Financial’s native token, WLFI, is trading at $0.18. This represents a significant 10% increase following the announcement, as well as substantial gains of 37% over the past fourteen days. 

Featured image from DALL-E, chart from TradingView.com