World Liberty Financial Applies for OCC Trust Bank Charter

Core Viewpoint - World Liberty Financial has applied to form a national trust bank to place its USD1 stablecoin under federal supervision, joining other crypto-linked firms in a newly recognized regulatory category [1][4]. Group 1: Company Overview - The proposed entity, World Liberty Trust Company, aims to manage the issuance and redemption of USD1, provide conversion services from other stablecoins, offer custody services, and manage reserves for USD1 [2]. - The filing targets a trust charter that allows custody and settlement functions without engaging in lending or accepting insured deposits [5]. Group 2: Industry Context - Stablecoins are designed to maintain a stable value, typically pegged to the U.S. dollar, facilitating price-stable digital payments and settlements [3]. - Recent approvals for federal charters have been granted to several firms, including Circle's First National Digital Currency Bank and Ripple National Trust Bank, indicating a growing acceptance of crypto banks [4]. - The structural upgrade represented by World Liberty's charter application is seen as a shift from using the stablecoin as a trading instrument to a settlement instrument, enhancing its utility in digital transactions [6]. - The need for a federally regulated structure for settling transactions in digital currencies is emphasized as more institutions adopt these currencies [7].