World Liberty Financial Applies for OCC Trust Bank Charter
World Liberty Financial, a crypto venture linked to Donald Trump's family, has applied to the U.S. Office of the Comptroller of the Currency (OCC) to form a national trust bank called World Liberty Trust Company. If approved, the entity would place the USD1 stablecoin under direct federal supervision, allowing it to issue and redeem USD1, convert other stablecoins, provide custody and reserve management services, and move beyond current state-level regulations. Only one other crypto-native firm, Anchorage Digital, has received such a charter, signaling the OCC’s restrictive approach to crypto trust banks. Unlike state-chartered banks, a national trust charter excludes lending and insured deposits, focusing on custody and settlement. The aim is to make USD1 a stable settlement instrument for digital transactions under strict regulatory oversight. This move could influence future stablecoin regulation and lower counterparty and state-by-state risks. World Liberty’s efforts face scrutiny due to its ownership structure, financial disclosures, and political affiliations, particularly links to Trump and Senate investigations into the project's financing and expansion.
