- The proposed trust bank would operate solely within stablecoin services under OCC supervision.
- USD1 has reached over $3.3 billion in circulation within a year of launch.
- The stablecoin is fully backed by US dollars and short-term US Treasury assets.
World Liberty Financial, a crypto firm linked to the Trump family, has applied for a national trust bank charter, a move that would place its stablecoin issuance and custody activities within the traditional banking regulatory framework.
USD1’s circulation rapidly increased to more than $3.3 billion within a year of its issuance.
Trust bank filing
According to filings with the US Office of the Comptroller of the Currency, World Liberty Financial has applied to launch World Liberty Trust Company through its subsidiary WLTC Holdings LLC.
The proposal outlines a national trust bank designed solely for stablecoin-related activity.
The trust bank would be authorised to issue, redeem, and custody USD1. It would not offer traditional lending or retail banking services.
Instead, it would operate within the long-established OCC trust bank framework, which requires strict asset segregation, independent reserve oversight, and regular examinations.
If approved, World Liberty Financial would operate under the same federal supervision applied to traditional trust institutions.
Stablecoin services
World Liberty Trust Company plans to offer three core services under US regulatory supervision.
These include minting and redeeming USD1, enabling conversion between US dollars and the stablecoin, and providing custody for USD1 and other approved stablecoins.
At launch, minting and redemption are expected to be fee-free.
All services would follow anti-money laundering rules, sanctions screening, and enhanced security controls.
The structure is also designed to align with the proposed GENIUS Act, which aims to establish clear federal standards for stablecoin issuers operating in the US.
USD1 growth
USD1 has expanded quickly since its launch, reaching about $3.3 billion in circulation within its first year. This growth places it among the fastest-scaling stablecoins so far.
The token is fully backed by US dollars and short-term US Treasury assets held with regulated financial institutions.
The stablecoin already operates across multiple blockchains, including Ethereum, Solana, BNB Smart Chain, TRON, Aptos, and AB Core.
It is also listed on major exchanges such as Binance and Coinbase, making it accessible to both retail and institutional users.
Regulatory pathway
If the OCC grants approval, the trust bank would initially focus on institutional clients seeking regulated stablecoin issuance and custody services.
The review process is expected to be detailed, covering capital adequacy, compliance infrastructure, and risk management systems.
The move follows earlier steps by US regulators to engage with crypto firms.
In December last year, the OCC issued conditional approvals to firms including Fidelity Digital Assets, Ripple, Paxos, and Circle.
More recently, Crypto.com and Coinbase have also submitted applications, reflecting a broader industry push toward federally regulated crypto banking structures.
