For many people who use crypto, one of the biggest frustrations is how hard it still is to move money between digital wallets and the traditional banking system.
Stablecoins promise to solve that problem by acting like digital dollars, but trust, regulation, and access to banks remain major hurdles. That tension is now back in focus after a crypto company linked to former US President Donald Trump took a major step toward becoming part of the federal banking system.
World Liberty Financial, a crypto firm tied to the Trump family, has confirmed that it has applied for a federal banking charter in the United States. The company says the move is meant to support the issuance and management of its dollar-backed stablecoin, known as USD1, and make it easier for users to convert the token into real dollars.
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A Bid For a National Trust Charter
According to the company, the application was submitted to the Office of the Comptroller of the Currency, the US regulator that oversees national banks. World Liberty Financial is seeking a national trust charter, a special type of banking license that allows firms to hold and manage financial assets without operating as full retail banks.
“This application marks a further evolution of the World Liberty Financial ecosystem,” said Zach Witkoff, the proposed president and chair of World Liberty Trust Company, the entity behind the application. “It reflects our commitment to operating within a clear and regulated framework.”
If approved, the charter would allow the company to issue USD1 directly and manage its reserves under federal oversight, rather than relying as heavily on third parties. That kind of approval could also make it easier for the firm to work with major financial institutions and payment systems.
Deep Ties to the Trump Family
World Liberty Financial’s political links have drawn close attention. All three of Donald Trump’s sons are listed as co-founders on the company’s website, while Trump himself is named as co-founder emeritus. Zach Witkoff is the son of Steve Witkoff, Trump’s special envoy to the Middle East.
The Office of the Comptroller of the Currency did not immediately comment on the application, and there is no public timeline for a decision. Banking charter reviews can take months and sometimes longer, especially when crypto-related activities are involved.
The move comes at a time when US regulators are paying closer attention to stablecoins, which are designed to hold a steady value by being backed by assets like cash or US Treasury bills.
Until now, BitGo has acted as the custodian for USD1. BitGo itself received a national trust charter late last year, part of a broader shift by regulators toward bringing crypto firms under clearer federal supervision. Approval of the charter would allow World Liberty Financial to take greater direct control over the issuance and management of USD1, reducing its dependence on external custodians.
World Liberty Financial is not alone. A number of other major crypto firms have also gone to regulators seeking national bank or trust charters, a way to operate under a single federal framework rather than a patchwork of state rules. Circle Internet Financial, the company behind the large USDC stablecoin, has applied for a national trust bank charter to help manage its dollar reserves and custody services under federal oversight.
Similarly, Ripple Labs is pursuing a national bank charter for its planned RLUSD stablecoin and is also seeking a Federal Reserve master account to access the central bank’s payments system.
Whether or not World Liberty Financial’s application is approved, the move itself signals how much the crypto industry has changed. What once positioned itself as an alternative to banks is now actively seeking banking licenses, regulatory approval, and closer ties to the financial system it once challenged.
David Adubiina
