World Liberty Financial Applies for OCC Charter to Launch Stablecoin Trust Bank

• World Liberty Financial has sought an OCC national trust bank charter for issuing and operating the USD 1 stablecoin.
• The move is in line with updated regulations of stablecoins in the US, as established in the GENIUS Act.

World Liberty Financial, a cryptocurrency company with strong ties to the current President of the United States, Donald Trump, has also reportedly applied for a national trust bank charter with the OCC (Office of the Comptroller of the Currency) in the United States.

The proposed charter is expected to pave the way for the company to operate World Liberty Trust Company, which is to be federally chartered and primarily deal with stablecoin issuance, custody, and conversion. This announcement is in line with how U.S. regulators are defining the crypto market structure under the GENIUS Act.

Stablecoin Issuance Under Federal Oversight

As reported in a company press release on Wednesday, World Liberty Trust Company would be the issuer of USD1, a stablecoin pegged to US dollars and associated with the World Liberty platform. Additionally, from this trust bank, users would be able to mint and redeem both USD1 and exchange other stablecoins for USD1.

The trust company is expected to serve institutional clients such as crypto exchanges, market makers, and investment companies. The company will be able to simplify the operations associated with stablecoins by having the issuance, custody, and conversion services offered by a single supervised body.

World Liberty Financial explained that the trust model would facilitate “institutional-grade” compliance and risk management so that the stablecoin business would conform to traditional finance practices. “If approved, it would join several crypto companies such as Circle, Ripple, Fidelity Digital Assets, BitGo, and Paxos, which have received trust bank charters from the OCC.

Political Connections and Regulatory Context

The World Liberty Financial is also connected to President Trump, as it has listed him as the “co-founder emeritus,” and his three sons as its cofounders. It also owns an entity named DT Marks DEFI LLC, which is controlled by the President and his family.

OCC’s policies towards cryptocurrencies have actually transformed within recent years. When the Biden administration came into power, OCC was more cautious when dealing with banking operations involving cryptocurrencies. But as Trump resumed office last year, federal regulators showed more flexibility towards cryptocurrencies. Jonathan Gould, who took over as an appointee of Trump, became the Comptroller of the Currency the previous summer.

The proposal comes when the state of the stablecoins in the U.S. is generally regulated under the GENIUS Act, which was passed into law last year. Although it established a foundation for the regulation of stablecoins, the issue of implementation of the law remains under the remit of agencies like the U.S. Treasury Department. However, Congress is still considering the issue of yield in stablecoins in the upcoming crypto structure bills.

World Liberty Financial’s application for a national trust bank charter is the latest testament to the accelerated institutionalization of stablecoins in the United States. Within the context of improving and refining regimes for federal agencies amid growing political support for clearer regulations for cryptocurrencies, the OCC’s evaluation process may identify how stablecoin issuers will structure compliance, custody, and issuance.

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