World Liberty Financial (WLFI), a cryptocurrency venture with substantial backing from the Trump family, has formally applied for a national banking license with the U.S. Office of the Comptroller of the Currency (OCC). The application, submitted by its subsidiary World Liberty Trust, initiates a rigorous 12 to 18-month review process that will scrutinize the entity's business plan, capital adequacy, management expertise, and compliance frameworks.
The move follows the Trump administration's approval of bank licenses for major crypto firms like Fidelity Digital Assets, Circle, Ripple, and Paxos in December. A successful charter would allow World Liberty Trust to issue and hold its dollar-backed stablecoin, USD1, which currently has a market capitalization of $3.4 billion and is held in reserve by BitGo. The company plans to offer crypto custody and stablecoin conversion services, focusing on institutional clients such as exchanges and investment firms.
World Liberty was launched in late 2024 with support from former President Donald Trump and promoted as a DeFi project, though promised lending and trading features have not yet been implemented. The application faces heightened scrutiny due to its high-profile ownership, with regulators expected to conduct exhaustive background checks on the Trump family members involved and assess the clear separation between banking operations and political activities.
Banking industry groups have reacted cautiously, while experts note the application represents a significant test of regulatory impartiality and could set a precedent for other non-financial entities with powerful backers seeking to enter the banking sector.
