World Liberty Financial (WLFI) Applies for Banking License

Key Highlights

• The Trump family-backed cryptocurrency venture, World Liberty Financial (WLFI), has applied for a U.S. national trust bank charter through the Office of the Comptroller of the Currency (OCC)
• The revelation comes after a recent shift in U.S. policy, with the OCC granting similar limited charters to firms like Circle and Coinbase in December 2025
• The license will formally issue its USD1 stablecoin and offer custody services

World Liberty Financial has applied for a federal banking license. The company, known as WLFI, is the crypto venture backed by the Trump family. 

On January 7, the application was submitted to the Office of the Comptroller of the Currency, which is the regulator for national banks. The new entity seeking the charter is called the World Liberty Trust Company. 

The main purpose of securing this license is to allow WLFI to formally issue and hold its own dollar-pegged stablecoin, called USD1. A banking charter would also permit the company to offer services like holding digital assets for customers and converting stablecoins. 

WLFI was launched in 2024 by Trump family members Donald Trump Jr. and Eric Trump, along with partners including Zachary Folkman, Chase Herro, Alex Witkoff, and Zach Witkoff. 

The company’s structure allows the Trump family to 75% of the net revenue from its token sales and stablecoin operations. 

WLFI Aims for Banking License Amid Regulatory Developments

The application comes after a development in U.S. regulatory policy that now allows certain crypto firms to obtain limited banking charters. In December 2025, the OCC granted conditional trust bank charters to five major companies, including Circle, Ripple, Coinbase, Paxos, and another firm. 

These charters allow companies to custody digital assets and facilitate payments under federal oversight, but they do not allow for taking customer deposits like a traditional bank. This framework is supported by recent OCC policy letters that clarify banks’ roles in crypto transactions. 

“Riskless principal crypto-asset transactions, as described above, are permissible under 12 U.S.C. § 24(Seventh). Different facts and circumstances could result in a different conclusion. As with any activity, a bank that conducts riskless principal crypto-asset transactions must do so in a safe and sound manner and in compliance with applicable law. The OCC will examine riskless principal crypto-asset activities as part of its ongoing supervisory process,” stated in the letter.

At the time of writing this, WLFI is trading at around $0.1656 with an impressive market capitalization of $4.42 billion, according to CoinMarketCap.

The license announcement also sparked further discussion on the social media platform X. However, the announcement has not been without controversy. Some critics have pointed to potential conflicts of interest, as President Donald Trump influences national crypto policy while his family profits from WLFI. The venture has also faced past scrutiny over its associations and dropped regulatory investigations. 

Earlier, OCC Acting Comptroller Michael Hsu stated in December 2025 that the approvals ensure a “safe and sound” integration of crypto into banking. Treasury Secretary Scott Bessent told Congress that such trust charters encourage U.S. leadership in digital finance. 

On the other hand, FDIC Chairman Martin Gruenberg warned that any subsidiaries issuing stablecoins must be properly licensed and supervised. Banking industry groups, like the American Bankers Association, have opposed these charters, arguing that they could threaten traditional banking. 

Apart from the license, WLFI has been active in expanding its offerings. In December 2025, co-founder Zach Witkoff announced plans to launch tokenized real-world asset products starting in January 2026. 

The company also proposed using $120 million from its treasury to provide more liquidity for its USD1 stablecoin.

Earlier, Comptroller of the Currency’s head, Jonathan V. Gould, said, “Following the financial crisis, there were years when the OCC received only one or two charter applications—as well as years when the OCC did not receive a single de novo application. This shortage of applications was not due to lack of demand. Rather, regulators too often gave would-be organizers clear signals that applications for federal bank charters and federal deposit insurance were not welcome, would be indefinitely delayed, and would ultimately be denied if not withdrawn.”

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