The World Liberty Trust will offer stablecoin issuance and redemption over time

Trump’s family company, World Liberty Financial, announced that one of its subsidiaries has applied for a national bank charter. The World Liberty Trust formally applied on Wednesday to establish a national bank, submitting its paperwork to the Treasury Department’s Office of the Comptroller of the Currency.

If approved, the banking charter would allow World Liberty Trust to handle both the issuance and safekeeping of USD1, its dollar-backed stablecoin. Currently custodied by BitGo, the stablecoin has grown to a $3.4 billion market value after a third-party investor used USD1 to fund a $2 billion deal involving Binance. U.S. dollar deposits also back the token at regulated institutions and assets invested in short-term U.S. government bonds. 

The USD1 stablecoin, established by World Liberty Financial, recently passed $3 billion in market value, according to a post shared by the company on X.

“USD1 market cap has surpassed $3B. This is a big moment for our team and the WLFI community. But milestones aren’t the goal — building the future of financial rails is. And we are just getting started,” the company wrote.

World Liberty Financial, co-founded by Donald Trump Jr., created USD1 earlier last year after Trump took back the White House, stating simply that “this one is for the retail users.”

The World Liberty Trust will offer stablecoin issuance and redemption over time

Speaking on the de novo filing, Zach Witkoff, the proposed president and chairman of World Liberty Trust Company, noted, “This application marks a further evolution of the ecosystem. USD1 grew faster in its first year than any other stablecoin in history.”

He added that the USD1 token is already being utilized for international transfers, settlement processes, and treasury functions. He further asserted, “A national trust charter will allow us to bring issuance, custody, and conversion together as a full-stack offering under one highly regulated entity.”

Overall, the new trust affiliate aims to offer stablecoin issuance and redemption, fiat access services, and custody and conversion solutions to institutional clients, including crypto exchanges and investment firms. It will operate in accordance with the GENIUS Act, the stablecoin bill signed into law by President Trump in July, and ensure that all operations meet anti-money laundering and sanctions standards, according to WLFI.

Aside from World Liberty Trust, Coinbase and Crypto.com are also seeking approval for their bank charters. Just last month, the Trump administration greenlit bank charter bids from BitGo and several major crypto firms, including Fidelity Digital Assets, Circle, Ripple, and Paxos. Although compared with full-service banks, trust banks have far narrower authorities. Banking lobbyists even warned that issuing trust charters could raise systemic risks and dilute the charter’s credibility.

Witkoff says President Trump and his family will be non-voting shareholders in the trust company

President Trump helped establish World Liberty in late 2024, presenting it as a DeFi project aimed at connecting crypto investors for lending, borrowing, and trading. However, the platform has yet to offer users access to the borrowing, lending, or trading features.

Mack McCain, General Counsel of World Liberty Financial and future Chief Trust Officer of World Liberty Trust Company, believes a charter would enable the company to launch products more quickly without relying on third parties.

Nonetheless, WLFI remains under scrutiny over claims that the President and his family’s involvement present a major conflict of interest. Witkoff has responded to critics, arguing that the trust company is designed to avert any such conflicts. He commented, “We structured this trust company intentionally to avoid conflicts of interest.” 

He argued that President Trump and his family will only be nonvoting stakeholders in the new trust subsidiary, and they won’t oversee the company’s daily business. In 2024, Witkoff co-launched World Liberty Financial alongside President Trump’s three sons: Eric Trump, Donald Trump Jr., and Barron Trump.

The USD1 token is already listed on top Korean exchanges, including UPbit and Bithumb. It is also available on major U.S. platforms, including Binance, Coinbase, Kraken, and Gemini.

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