Trump-Backed WLFI Seeks US Banking Charter to Launch $1 Stablecoin—Game Changer or Political Power Play?
WLFI—a digital asset firm with reported ties to former President Donald Trump—just filed paperwork for a U.S. banking license. The goal? To issue a USD-pegged stablecoin directly from a regulated bank.
Why This Move Breaks the Mold
Most stablecoins operate in a regulatory gray area—issued by crypto companies, not banks. WLFI's play flips the script. A banking charter would let them mint a digital dollar with the full backing of federal oversight, sidestepping the patchwork of state money-transmitter laws that plague competitors.
It's a regulatory arbitrage masterstroke. Or a politically charged gamble.
The Stablecoin Endgame
Forget algorithmic coins and offshore issuers. A bank-issued stablecoin could offer something others can't: ironclad deposit insurance claims and direct integration with the legacy financial system. Imagine sending digital dollars that settle in seconds but carry the same protections as your checking account.
Wall Street's watching—and sweating. Another cynical finance jab? The same banks that lobby against crypto are now staring down a competitor that might just play by their own rules, only better.
What's Really at Stake
This isn't just about launching another stablecoin. It's a test of whether crypto-native firms can infiltrate the fortress of traditional banking—and whether regulators will let them. Approval would signal a seismic shift in how digital assets are woven into the financial fabric.
Denial? Business as usual. But with Trump's shadow looming over the application, the decision becomes as much about politics as policy. Buckle up.
World Liberty Financial, a crypto firm linked to the Trump family, has announced that WLTC Holdings LLC has applied for a national trust bank charter to issue and custody its USD1 stablecoin.
The MOVE follows USD1’s rapid rise to $3.38 billion in circulation within one year, signaling a push toward full federal regulation.
World Liberty Financial Files for US Trust Bank License
According to its filing with the US Office of the Comptroller of the Currency (OCC), World Liberty Financial has applied to launch World Liberty Trust Company through WLTC Holdings LLC.
The plan is to create a national trust bank focused only on stablecoin services, including issuing, redeeming, and safely holding its USD1 stablecoin.
Mack McCain, general counsel of World Liberty Financial, said regulatory oversight is key for wider adoption.
“WLTC will operate under the same framework the OCC has used for over a century, with segregated customer assets, independent reserve management, and regular examination.”
If approved, this WOULD allow World Liberty Financial to operate under full federal oversight, similar to traditional trust banks.
Here’s What WLTC Services Offers
World Liberty Trust Company plans to offer three main services under the US regulators.
- First, users can create and redeem USD1 stablecoins without paying fees at launch.
- Second, it will allow easy conversion between US dollars and USD1.
- Third, it will safely store USD1 and other approved stablecoins.
All services will follow strict anti-money laundering rules, sanction checks, and strong security systems. The trust bank will also meet the requirements of the upcoming GENIUS Act, which sets clear rules for stablecoins in the US.
Why USD1 Stablecoin Only?
USD1 has seen rapid growth since launch, reaching $3.3 billion in circulation within its first year, making it one of the fastest-growing stablecoins so far. The stablecoin is fully backed by US dollars and short-term US Treasury assets held at regulated institutions.
USD1 currently operates across multiple blockchains, including Ethereum, Solana, BNB Smart Chain, TRON, Aptos, and AB Core.
It is already listed on major exchanges such as Binance and Coinbase, allowing easy access for both retail and institutional users.
When is Approval possible?
If approved, the trust bank will initially serve institutional clients, offering regulated stablecoin and custody services.
However, approval may take time, as the OCC carefully reviews capital strength, compliance systems, and risk controls.
Eventually, last year in December, the OCC gave conditional approvals to major crypto firms like Fidelity Digital Assets, Ripple, Paxos, and Circle. Meanwhile, Crypto.com and Coinbase have also applied, showing growing interest in regulated crypto banking.
