World Liberty Financial has applied for a federal trust bank license to enhance its USD1 stablecoin services. The application, submitted by WLTC Holdings LLC to the Office of the Comptroller of the Currency on January 7, aims to establish a national trust bank under the name World Liberty Trust Company. This move is intended to consolidate stablecoin issuance, custody, and conversion services for institutional clients, including cryptocurrency exchanges and investment managers.
The USD1 stablecoin, which has grown to a $3.3 billion market cap within a year, is central to this expansion. The stablecoin is backed by US dollars and short-term US Treasury assets, with reserves held by regulated financial institutions. The proposed trust bank will offer issuance, redemption, and custody services under strict federal oversight, adhering to AML, GENIUS Act, and cybersecurity standards. This initiative seeks to streamline operations and address regulatory concerns in the stablecoin sector.
World Liberty Financial Seeks Federal Trust Bank License for USD1 Stablecoin Expansion
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