Key facts
- World Liberty Financial has applied for a national trust bank charter from the U.S. Office of the Comptroller of the Currency.
- The proposed World Liberty Trust Company aims to oversee the USD1 stablecoin's issuance, redemption, custody, and reserve management.
- The charter would enable conversion services from other stablecoins into USD1.
- This application seeks direct federal supervision for the USD1 stablecoin.
- Recent approvals by the OCC include Circle's First National Digital Currency Bank and Ripple National Trust Bank.
World Liberty Financial, a cryptocurrency venture reportedly associated with Donald Trump's family, has submitted an application to the U.S. Office of the Comptroller of the Currency (OCC) to establish a national trust bank. The proposed entity, to be named World Liberty Trust Company, seeks to bring its USD1 stablecoin under direct federal oversight.
If approved, the trust company would manage the issuance and redemption of USD1, facilitate conversions from other major stablecoins into USD1, provide custody services for fiat and major stablecoins, and oversee the reserve management for assets backing USD1. Stablecoins are digital currencies designed to maintain a stable value relative to a reference asset, typically the U.S. dollar.
This move represents a significant regulatory step for World Liberty Financial, aiming to transition its stablecoin from a trading instrument to a settlement instrument within a federally regulated framework. Chris Loeffler, CEO of Caliber, noted that such a charter offers a more robust structure for digital currency transactions, mitigating risks associated with state-licensed entities and partnerships with existing financial institutions.
While national trust bank charters are rare for crypto firms, the OCC has recently granted federal charters or conditional approvals to several other digital asset companies, including Circle's First National Digital Currency Bank, Ripple National Trust Bank, BitGo, Fidelity Digital Assets, and Paxos Trust Company. Anchorage Digital was previously the sole digital asset company to hold such a federal charter.