World Liberty Financial, a crypto venture backed by members of U.S. President Donald Trump’s family, has taken a formal step toward regulated banking by applying for a national trust bank license focused on stablecoin operations. The company said its subsidiary, WLTC Holdings, submitted a de novo application to U.S. banking regulators seeking approval to operate under federal oversight. If granted, the license would allow the firm to issue and custody its dollar-backed stablecoin, USD1, while offering redemption and conversion services tied directly to the U.S. financial system. The move reflects a broader industry shift as crypto-native firms seek legitimacy through traditional regulatory channels. With stablecoins increasingly used for payments, settlements, and on-chain liquidity, access to a trust bank charter is viewed as a critical bridge between digital assets and regulated finance. Only a limited number of institutions currently operate under such frameworks, underscoring the significance of the application within the evolving U.S. crypto landscape.
The proposed trust bank would support issuance and custody of USD1, a stablecoin that World Liberty Financial says has surpassed $3.3 billion in circulation within its first year. The company plans to enable fee-free conversions between U.S. dollars and USD1 at launch, positioning the bank as a low-friction on-ramp for users seeking dollar exposure on blockchain rails. National trust banks operate under specific mandates, allowing them to provide fiduciary and custody services without engaging in traditional lending. This structure has made them attractive to digital asset firms aiming to safeguard client funds while remaining compliant with federal standards. Industry observers note that securing such a charter can enhance credibility with institutional users and regulators alike. As stablecoins continue to gain traction across trading, remittances, and tokenized assets, regulated custody and issuance models are becoming a central focus for crypto firms operating in the United States.
World Liberty Financial said the planned trust bank would be designed to comply with the recently enacted GENIUS Act, which established a federal regulatory framework for stablecoins. The legislation outlines requirements around reserves, disclosures, and operational safeguards, signaling a more defined path forward for dollar-linked digital assets. By aligning its banking proposal with the new law, the company appears to be positioning itself ahead of anticipated regulatory scrutiny. The application comes as several major crypto firms pursue similar approvals, highlighting growing competition to secure early mover advantage in regulated stablecoin banking. Approval would place World Liberty Financial among a small group of digital asset companies operating under direct federal supervision. While regulators have yet to comment on the application, the move underscores how stablecoins are increasingly intersecting with traditional banking structures, reshaping how digital dollars are issued, held, and converted within the U.S. financial system.
