Trump Crypto Venture World Liberty Applies for Bank Charter

Core Viewpoint - World Liberty Financial, co-founded by President Donald Trump, is pursuing a US bank charter to enhance its USD1 stablecoin operations, reflecting a trend among crypto firms seeking federal legitimacy without full regulatory obligations [1][3]. Group 1: Company Developments - WLTC Holdings LLC has submitted a de novo application to the Office of the Comptroller of the Currency to establish World Liberty Trust, a national trust bank focused on stablecoin services [2]. - World Liberty has raised funds through its WLFI token, which transitioned from a non-transferable governance token to a tradable asset, and its USD1 stablecoin has a market capitalization of $3.4 billion [5]. Group 2: Industry Context - The application for a bank charter by World Liberty is part of a broader trend among crypto firms, which is raising concerns among traditional banks about the implications for financial supervision [3]. - Previous applications for bank charters in the crypto space include Coinbase Global Inc. and conditional approvals for firms like Ripple, Paxos, and BitGo by the OCC [4]. Group 3: Future Implications - If the charter is granted, World Liberty Trust will provide services to institutional clients, including crypto exchanges, and will facilitate digital asset custody and stablecoin conversion [6]. - The co-founder of World Liberty emphasized that a national trust charter would establish a federal framework for custody and reserve management, potentially enhancing institutional participation and consumer protections in regulated payment systems [7].