World Liberty Financial Applies for National Trust Bank Charter

World Liberty Financial’s subsidiary, WLTC Holdings LLC, has filed a de novo application to establish the World Liberty Trust Company, aiming to issue, custody, and redeem the USD1 stablecoin with federal oversight. Donald J. Trump is involved as co-founder emeritus.

The action potentially reshapes financial regulation for stablecoins, impacting institutions wishing for federal oversight.

Application Details

World Liberty Financial, founded in part by Donald Trump, has officially submitted a de novo application to establish the World Liberty Trust Company, aiming to issue and manage the USD1 stablecoin. The proposed move signals a step towards integrating stablecoin operations under a federally regulated framework.

The leadership team includes Trump’s sons as co-founders, and Zach Witkoff as the proposed President and Chairman. This development aligns with World Liberty Financial’s ambition to further utilize USD1, expanding it across major blockchain networks.

Implications for the Financial Sector

The application has implications for various financial sectors, potentially influencing stablecoin regulatory practices in the U.S. Additionally, WLTC could affect institutions utilizing USD1 for cross-border transactions. The move might provide financial clarity and accessibility to stablecoin operations under a highly regulated entity.

As the application awaits approval, its outcome could set precedents for how stablecoin issuers engage with federal oversight. “This application marks a further evolution of the World Liberty Financial ecosystem,” noted Zach Witkoff, the proposed President & Chairman of WLTC. “USD1 grew faster in its first year than any other stablecoin in history. Institutions are already using USD1 for cross-border payments, settlement, and treasury operations. A national trust charter will allow us to bring issuance, custody, and conversion together as a full-stack offering under one highly regulated entity.”

If granted, World Liberty Financial may reinforce the role of regulated entities in the cryptocurrency landscape, impacting market entries.

A New Phase for Digital Finance

World Liberty Financial’s initiative may lead to significant changes in digital finance. It underscores an important moment where traditional financial regulation meets evolving cryptocurrency ecosystems, potentially transforming industry practices related to stablecoin issuance, conversion, and custody.