TLDR
- World Liberty aims for a rare federal trust bank charter for USD1 stablecoin.
- The charter allows minting, custody, and conversion of USD1 under federal rules.
- USD1 operations target institutional clients across major blockchain networks.
- Approval would boost regulated crypto services and cross-border settlements.
- The filing sets a benchmark for federally supervised stablecoin ecosystems.
World Liberty Financial, a crypto venture linked to former President Donald Trump, filed for a rare trust bank charter. The proposed entity, World Liberty Trust Company, aims to issue and manage the USD1 stablecoin. The filing positions the company to operate under direct federal oversight with broad crypto-related powers.
The firm plans to handle USD1 issuance, redemption, and conversion services for other major stablecoins. , The trust bank charter will allow custody of fiat and digital assets. The company intends to perform reserve management for USD1 holdings across multiple blockchain networks.
This application aligns World Liberty with other federally chartered crypto firms, creating a full-stack regulated service. Stablecoins like USD1 track the U.S. dollar to ensure price stability. The charter would enable secure institutional operations and cross-border settlement capabilities.
Stablecoin Operations Under Federal Supervision
World Liberty Trust Company would provide three core services under the trust bank charter. It would mint and redeem USD1 with no initial fees, ensuring seamless stablecoin operations. On-ramp and off-ramp services would convert U.S. dollars into USD1 and vice versa.
Custody and conversion would include secure storage for USD1 and other accepted stablecoins. These operations would run under federal oversight to meet compliance and regulatory standards. Segregated customer assets and independent reserve management would be mandatory under the charter.
The charter positions the trust bank to serve institutional clients, including exchanges, market makers, and investment firms. It would operate across Ethereum, Solana, BNB Smart Chain, TRON, and other networks. The service aims to facilitate tokenized settlement and programmable enterprise payouts efficiently.
Federal Oversight and Regulatory Context
National trust bank charters remain rare for crypto companies, with Anchorage Digital as the only precedent. The OCC regulates about 60 trust banks, treating crypto firms as exceptional applicants. The high approval bar reflects the careful scrutiny applied to new crypto trust banks.
Unlike state-level fintech efforts, World Liberty targets a federal trust bank charter. Lending or insured deposit functions are not part of the application, focusing instead on custody and stablecoin issuance. This model provides a regulated framework for broader financial integration.
Approval would indicate regulatory clarity under the GENIUS Act for crypto financial services. The federal charter enables full operational transparency, cybersecurity standards, and AML compliance. The trust bank charter ensures USD1 can support institutional cross-border payments reliably.
Institutional Reach and Market Potential
USD1 has reached over $3.3 billion in circulation in its first year. The stablecoin powers cross-border payments, treasury operations, and settlement for enterprise clients. The charter would centralize issuance, custody, and conversion under one federally regulated entity.
World Liberty Trust Company will leverage federal oversight to expand stablecoin utility in traditional finance. Institutions could convert other stablecoins into USD1, enhancing liquidity and market integration. Federal charter approval would mark a significant milestone for crypto trust banks.
The trust bank charter would allow World Liberty to fully manage USD1 reserves at regulated institutions. This structure ensures transparency and strengthens institutional confidence. The filing signals a major step in bridging decentralized finance with regulated banking frameworks.
The application emphasizes operational clarity, regulatory alignment, and secure stablecoin services. The federal trust bank charter would set a benchmark for other crypto-native firms. World Liberty Trust Company aims to provide a comprehensive and federally supervised stablecoin ecosystem.
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