Trump-Linked World Liberty Financial Seeks Trust Bank Charter to Legitimize USD1 Stablecoin Infrastructure

Donald Trump's World Liberty Financial is betting on a banking license to transform its USD1 stablecoin from a crypto market hack into the rails of institutional finance.

World Liberty Financial (WLFI), a project linked to Donald Trump, applied for a national trust bank charter to establish the 'World Liberty Trust Company' on Jan. 7. The charter aims to centralize USD1 stablecoin's issuance, custody, redemption, and reserve management under a single regulated entity.

Zach Witkoff, proposed President and Chairman of World Liberty Trust Company, said:

"Institutions are already using USD1 for cross-border payments, settlement, and treasury operations. A national trust charter will allow us to bring issuance, custody, and conversion together as a full-stack offering under one highly regulated entity."

USD1 has $3.3 billion in supply across 10 blockchain networks and is positioning itself as regulated infrastructure for institutional payments and settlement.

The application reflects a strategic pivot toward compliance-driven adoption as stablecoins shift from speculative tools to regulated infrastructure amid Washington's 2025 stablecoin framework.

The trust bank charter enables 'narrow banking' focused on custody and asset safekeeping without engaging in traditional lending or deposit-taking. Key advantages include counterparty confidence for institutions, vertical integration of stablecoin operations, and potential access to the U.S. payment system.

Look, this move isn't just about regulatory compliance—it's about redefining stablecoins as the plumbing of institutional finance. If WLFI succeeds, USD1 could become the backbone of cross-border settlements, bypassing traditional SWIFT channels entirely.

⚠️ LEGAL DISCLAIMER: This article is for informational purposes only and does not constitute financial or investment advice.