World Liberty Financial, the cryptocurrency platform backed by the Trump family, is making a significant play in the digital asset space by applying for a national trust bank license in the U.S. This strategic move, submitted to the Office of the Comptroller of the Currency (OCC), aims to revolutionize how its stablecoin, USD1, is issued, custodied, and converted, thereby accelerating its institutional adoption.
A Strategic Bid for Stability
The core objective behind World Liberty Financial's application is to bring all critical operations for its USD1 stablecoin in-house. Currently relying on third-party providers like BitGo, a national trust license would empower World Liberty to unify emission, custody, and conversion under a single, highly regulated entity. This would facilitate fee-free minting and redemption of USD1, seamless conversion between U.S. dollars and USD1, and even allow for the custody of other stablecoins. CEO Zach Witkoff highlights that institutions are already leveraging USD1 for cross-border payments, settlement, and treasury operations, making this internal control crucial for expanding its utility and appeal.
Navigating Regulatory Waters
While the OCC has shown a willingness to integrate crypto services into traditional finance, evidenced by its previous conditional bank license approvals for major players like Circle and Fidelity Digital Assets, World Liberty Financial faces a unique layer of scrutiny. Concerns have been raised regarding potential conflicts of interest due to President Donald Trump's co-founding role in the company, alongside his sons. To preempt these challenges, World Liberty has structured the trust company to explicitly avoid such conflicts, with Witkoff asserting that Trump and his family will not hold executive positions or exert daily control over the business operations.
