World Liberty Financial Seeks OCC Approval to Launch Trust Bank for USD1 Stablecoin

World Liberty Financial (WLFI), a DeFi project backed by President Donald Trump, announced that its subsidiary, WLTC Holdings LLC, has submitted a de novo application to the Office of the Comptroller of the Currency (OCC) to establish the World Liberty Trust Company, National Association (WLTC).

The proposed national trust bank would focus on stablecoin services, specifically issuing and redeeming USD1 without fees at launch, offering free fiat on- and off-ramps for USD1, and providing custody and conversion services for USD1 and select other stablecoins. Zach Witkoff, proposed President and Chairman of WLTC, stated that the charter would allow them to offer a full-stack regulated offering for USD1, which has seen rapid growth.

WLTC plans to operate under full federal supervision, complying with the GENIUS Act regarding AML, sanctions screening, and cybersecurity, with customer assets segregated and reserves independently managed. This move follows a trend of digital asset firms seeking federal trust charters to gain unified federal oversight, bypassing state licensing, although these entities do not offer traditional deposit insurance like FDIC. Traditional banking groups, however, oppose these approvals, arguing they create an uneven regulatory playing field.

(Source：BeInCrypto)