A New Era for Crypto Banking: World Liberty Financial Seeks Federal Approval

World Liberty Financial has taken a bold step by applying for a national trust bank charter with the U. S. Office of the Comptroller of the Currency (OCC). This move aims to bring its USD1 stablecoin under federal oversight, a significant shift in the crypto landscape. The company, known for its ties to the Trump family, wants to create the World Liberty Trust Company. If approved, this entity would handle the issuance, redemption, and custody of USD1, as well as conversions from other major stablecoins. It would also manage the reserves backing USD1. Stablecoins are digital currencies designed to maintain a stable value by tracking a reference asset, like the U. S. dollar. This stability makes them ideal for digital payments and settlements. World Liberty Financial emphasizes its commitment to transparency and regulation in its operations.However, obtaining a national trust bank charter is no small feat. Currently, only Anchorage Digital has achieved this among crypto firms. The OCC oversees about 60 national trust banks, and crypto-native firms are still considered exceptions. World Liberty's application is seen as a strategic upgrade. It could transform USD1 from a trading instrument to a settlement instrument, facilitating safer transactions in the digital currency space. This move might also influence future stablecoin legislation and regulation. World Liberty Financial operates on public blockchain networks, offering token-based financial products. Despite its innovative approach, the company has faced scrutiny over its ownership and financial disclosures. A Trump-affiliated entity initially held a significant share of proceeds but later reduced its stake amid a Senate inquiry.