World Liberty Financial Files For U.S. Bank Charter To Issue And Custody USD1 Stablecoin

World Liberty Financial is accelerating its push into regulated digital finance as WLTC Holdings LLC submits a de novo application to the U.S. Office of the Comptroller of the Currency (OCC) to establish a national trust bank built specifically for stablecoin issuance and custody.

The proposed entity , World Liberty Trust Company, National Association (WLTC) , would operate under federal oversight and position the firm among a small group of crypto issuers attempting to bring dollar-backed digital assets into the regulated banking perimeter.

The announcement is confirmed in an official statement from @worldlibertyfi.

Industry analysts and commentators describe the filing as a direct challenge to established players such as Circle and Ripple, both of whom are positioning themselves as federally supervised digital asset institutions. Crypto researcher @CryptoPatel summarizes the move’s significance and competitive implications.

The filing marks one of the most consequential attempts yet to merge stablecoin operations with a national banking framework, a shift that may define the next stage of U.S. digital asset regulation.

Wlf Moves Toward Federal Banking Status

WLTC Holdings LLC , a branch of World Liberty Financial , has formally applied to the U.S. OCC for approval to establish a new national trust bank. The proposed WLTC would function as a fully regulated federal entity dedicated to issuing, holding, and managing a stablecoin product known as USD1.

A national trust charter is one of the few pathways for a crypto-focused firm to secure direct federal oversight without relying on state-level regimes. If the OCC approves the application, WLTC would join a very limited cohort of federally supervised digital asset institutions.

According to the company’s statement, the purpose-built trust structure gives WLTC:

• authority to issue $USD1 directly,
• the ability to custody user funds in-house,
• the legal capacity to manage reserves under federal supervision, and
• the framework to operate payments, on-ramps, and off-ramps on U.S. banking rails.

World Liberty Financial presents this as a step toward institutional-grade compliance and long-term stability for the USD1 ecosystem.

Building A Fully Regulated Stablecoin Infrastructure

World Liberty Financial positions USD1 as a dollar-backed stablecoin designed for mainstream transactions, global commerce, and digital settlement. The company aims to differentiate USD1 by embedding banking-grade controls inside a federally regulated trust structure rather than relying solely on state-chartered entities or external custodians.

The proposed WLTC national trust bank would oversee the lifecycle of USD1 from issuance to redemption. The firm states that USD1 would remain redeemable 1:1 for U.S. dollars with fee-free conversion, allowing frictionless movement between fiat and digital representations.

This matters because the stablecoin market is increasingly shaped by regulatory expectations:

• Circle’s USDC operates under state supervision while seeking broader federal recognition.
• Ripple’s RLUSD is positioned to integrate with enterprise payment infrastructure.
• Tether dominates global demand but is based offshore and outside U.S. regulatory oversight.

World Liberty aims to enter a different category entirely , a stablecoin issued directly by a federally regulated banking institution. This structure may appeal to enterprises, payment processors, and financial institutions that require regulatory certainty before integrating digital dollar systems.

USD1 Crosses $3.3B In Circulation In First Year

One of the most striking details in the filing is the scale of USD1’s early adoption. According to the company, USD1 surpassed $3.3 billion in circulation within its first year , a milestone that places it among the fastest-growing stablecoins on the market.

This rapid growth provides both momentum and pressure:

• It signals strong demand for alternatives to legacy stablecoins.
• It demonstrates that USD1 already operates at systemically relevant scale.
• It forces regulators to evaluate whether supervision is needed sooner rather than later.

For the OCC, a stablecoin issuing over $3B of supply in its first year presents both opportunity and responsibility. For World Liberty Financial, the size of the circulating supply strengthens its case that it requires a federally overseen structure to operate safely and transparently.

Wlf Aims To Join Circle And Ripple As A Federally Regulated Crypto Bank

If the OCC approves the application, World Liberty Financial would become one of only a few entities able to issue and custody digital assets as a national trust bank. This positions WLTC alongside major industry names pushing toward regulated digital-asset banking.

The move signals a broader trend: stablecoin companies are increasingly seeking full legitimacy within the U.S. banking system rather than operating in regulatory gray zones. The trust bank model allows the firm to combine crypto-native technology with traditional oversight, a hybrid approach regulators have been signaling interest in.

Approval would also support the firm’s ambitions to:

• integrate USD1 into institutional settlement systems,
• provide secure custody for corporate clients,
• expand into regulated payments infrastructure, and
• support cross-border financial operations under federal safeguards.

These steps would place WLTC in a strategic position as regulatory clarity continues to reshape the stablecoin landscape.

Regulatory Significance And Market Impact

The OCC’s review of the WLTC application arrives at a crucial moment for digital-asset policy. U.S. regulators have spent the past three years debating whether stablecoin issuers should be treated like banks, payment companies, or something else entirely.

World Liberty Financial’s application effectively tests the hypothesis that stablecoin issuers can fit directly inside the existing federal banking framework. If approved, it would represent a major validation for firms seeking to issue digital dollars under strict supervision.

Market implications include:

• Increased legitimacy for bank-issued stablecoins
• Competitive pressure on offshore or lightly regulated issuers
• Greater institutional interest due to regulatory clarity
• Potential reshaping of global stablecoin markets

While the application does not guarantee approval, its submission signals the direction U.S. stablecoin regulation is heading: toward integration with federal banking laws and oversight.

What Approval Would Mean For The Future Of Stablecoins

The WLTC application could become a defining moment in the evolution of U.S. stablecoin policy. If approved, the model may encourage more companies to seek national trust charters, leading to:

•  standardized reserve requirements,
•  uniform consumer protection rules,
•  direct regulatory supervision, and
•  bank-level accountability.

For the broader digital-asset market, a federally regulated USD1 issuer would accelerate institutional adoption, expand the role of stablecoins in payments, and push competitors toward more rigorous compliance.

For World Liberty Financial, the charter would transform it from a technology-driven stablecoin issuer into a regulated financial institution capable of operating across both banking and blockchain ecosystems.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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