World Liberty Financial Seeks Federal Trust Bank License to Expand Stablecoin Services
- WLFI plans a federal trust bank to support stablecoin issuance custody and conversions for institutions.
- USD1 stablecoin has grown to over $3.3 billion in one year through institutional use.
- The trust bank will follow strict federal rules including AML, GENIUS Act, and cybersecurity standards.
World Liberty Financial plans to expand its stablecoin business in the United States through a proposed federally regulated trust bank. The company, backed by Donald Trump’s family, confirmed that WLTC Holdings LLC has applied for a national trust bank license. The application was filed with the Office of the Comptroller of the Currency on January 7.
If regulators approve the request, the institution will rebrand as World Liberty Trust Company. It will operate as a national trust bank focused on stablecoin services. The structure places the business under direct federal oversight.
Federal Trust Bank Strategy Takes Shape
The proposed trust bank aims to serve large financial institutions. Target clients include cryptocurrency exchanges, trading firms, and investment managers. The goal is to consolidate stablecoin issuance, custody, and conversion within one regulated entity.
The company plans to reduce operational friction for institutional users by using a single platform. It also seeks to address regulatory concerns around fragmented stablecoin infrastructure. As a result, compliance and reporting processes would sit under one supervisory framework.
The trust bank would operate under existing trust banking standards. These standards include asset segregation, independent reserve controls, and routine regulatory examinations. This model aligns with long-standing trust banking practices in the United States.
USD1 Stablecoin Drives the Expansion
USD1 stands at the center of the expansion plan. The US dollar-backed stablecoin has surpassed $3.3 billion in circulating supply within one year. Growth has come from institutional use rather than retail adoption.
Institutions currently use USD1 for cross-border payments, trade settlements, and treasury operations. This usage pattern highlights demand for regulated dollar-linked digital assets. It also reflects growing interest in blockchain-based settlement tools.
USD1 is fully backed by US dollars and short-term US Treasury assets. Regulated financial institutions hold the reserves. This structure aims to support price stability and liquidity during market stress.
Planned Services Under Regulatory Oversight
Once approved, the trust bank will offer three core services. The bank will issue and redeem USD1 under federal supervision. Customers will mint or redeem the stablecoin without fees.
The bank will also provide on-ramp services. These services allow users to convert US dollars into USD1 at no cost. This feature targets institutional users seeking efficient settlement access. Custody services form the third pillar. The bank will hold USD1 and other approved stablecoins on behalf of clients. It will also allow stablecoin conversions at prevailing market prices.
Compliance and Industry Context
The trust bank will comply with the GENIUS Act and strict anti-money laundering requirements. It will also follow sanctions rules and cybersecurity standards. These measures aim to protect customer assets and sensitive data. Mack McCain, WLFI’s general counsel, will serve as trust officer for WLTC. The structure follows traditional trust banking rules that have existed for over a century.
