Key takeaways
- World Liberty Financial is seeking a national trust charter to place the custody and conversion of $1 issues under federal oversight.
- The move signals growing institutional demand for regulated stablecoin infrastructure as the supply of $1 exceeds $3.3 billion.
World Liberty Financial said WLTC Holdings LLC has filed a de novo application with the Office of the Comptroller of the Currency to create the World Liberty Trust Company National Association, a proposed national trust bank focused on stablecoin operations.
If approved, the charter would allow the trust to issue $1, the company’s dollar-backed stablecoin, and provide custody and conversion services under a single federally regulated entity.
USD1 reached over $3.3 billion in circulation in its first year, with its usage concentrated among institutional clients for cross-border payments, settlement and treasury management.
The trust company plans to serve cryptocurrency exchanges, market makers and investment companies, while also allowing holders of other stablecoins to convert to 1 USD. World Liberty Financial said origination, ramp and exit services, as well as custody would launch fee-free initially, with conversions offered at prevailing market rates.
Trust Bank is designed to comply with the GENIUS Act and will operate under federal supervision with comprehensive anti-money laundering oversight, sanctions compliance and cybersecurity controls.
Mack McCain, general counsel of World Liberty Financial, is expected to serve as fiduciary officer, overseeing fiduciary responsibilities. The company said the OCC framework would provide regulatory clarity for banks, asset managers and companies expanding the use of stablecoin.
USD1 is fully backed by U.S. dollars held at regulated depository institutions and funds invested in short-duration U.S. Treasury bonds. The stablecoin operates on ten blockchain networks, including Ethereum, Solana, BNB Smart Chain, TRON, Aptos and AB Core.
