World Liberty Financial, a crypto platform associated with the Trump family, has submitted an application for a national trust banking charter to the Office of the Comptroller of the Currency (OCC). This move aims to enhance the institutional use of its stablecoin, USD1. The charter, filed by its subsidiary WLTC Holdings, would enable the company to manage the issuance, custody, and conversion of USD1 internally, eliminating the need for third-party services.
CEO Zach Witkoff highlighted that various institutions are already utilizing USD1 for functions such as cross-border payments and treasury operations. The establishment of a trust bank is expected to facilitate fee-free transactions involving USD1, including its minting and redemption, while also allowing for custody of USD1 and other stablecoins.
However, both World Liberty and the OCC may encounter heightened scrutiny due to concerns regarding potential conflicts of interest involving former President Donald Trump and his family's connections to the crypto industry. Trump is recognized as a co-founder of World Liberty, alongside his three sons. Witkoff mentioned that the company was structured as a trust to mitigate these conflicts, ensuring that Trump and his family would not take on executive roles or direct daily operations.