This marks a significant step toward the convergence of traditional finance and the digital asset ecosystem. On Wednesday, World Liberty Financial announced that WLTC Holdings had officially submitted an application to the Office of the Comptroller of the Currency (OCC).
The objective is to establish the World Liberty Trust Company, National Association (WLTC), which would operate as a national trust bank specialising in stablecoin-related activities.
This initiative aims to bring the issuance and management of the USD1 stablecoin under a federal regulatory framework, potentially redefining compliance standards in the cryptocurrency sector.
A national trust charter to formalize USD1’s institutional status
WLTC Holdings has applied for a national trust bank charter that would place the company under a supervisory regime comparable to that of major US financial institutions. If approved, the charter would authorise WLTC to issue and manage USD1, a US dollar-backed stablecoin.
Zach Witkoff, who is expected to join the board of the future entity, highlighted the importance of this development for the World Liberty Financial ecosystem. According to him, the growing institutional adoption of USD1 for cross-border payments and treasury operations supports the transition to a highly regulated structure. The goal is to consolidate issuance, custody, and conversion services within a single regulated entity.
“Institutions are already using USD1 for cross-border payments, settlement and treasury operations. A national trust charter will enable us to provide these services as part of a comprehensive offering under the umbrella of a single, highly regulated entity,” said Mr Witkoff.
USD1 has gained significant market traction, with more than $3.3 billion in circulation in its first year, according to Mike Belshe, CEO of BitGo.
“BitGo is proud to have supported the rapid growth of USD1, which surpassed $3.3 billion in its first year,” he said.
The stablecoin currently operates on more than a dozen blockchains, including Ethereum, Solana and BNB Smart Chain, enabling near-instant settlement.
See also: World Liberty Financial strengthens USD1 with $120 million backing
Services and compliance with regulatory requirements
WLTC Holdings’ strategy focuses on services tailored to institutional clients, including exchanges, market makers and investment firms.
Under OCC supervision, the company plans to launch three key initiatives. First, it will offer fee-free issuance and redemption of USD1 during the initial launch phase. Second, it will establish fiat-to-crypto gateways to facilitate conversion between US dollars and USD1, also without fees at launch.
Finally, WLTC intends to provide secure custody for USD1 and other stablecoins, while allowing clients to convert these assets into USD1 at prevailing market rates.
From a compliance standpoint, the trust bank would operate in accordance with the GENIUS Act. Mack McCain, Chief Legal Officer of World Liberty Financial and prospective Fiduciary Officer of WLTC, confirmed that operations would adhere to strict protocols.
These measures include segregation of client assets, independent management of reserves composed of US dollars and short-term Treasury securities, as well as robust anti-money laundering and cybersecurity controls.
The stated objective is to provide banks and asset managers with greater regulatory clarity, drawing on the OCC’s longstanding expertise in fiduciary supervision.
A new era for stablecoin infrastructure
WLTC Holdings’ application for a national trust bank charter could represent a turning point in the integration of stablecoins into the federal banking framework. BitGo, a strategic partner in the project, views this transition as a logical step following the rapid expansion of USD1, according to CEO Mike Belshe.
“BitGo looks forward to continuing to serve as a key strategic partner as WLTC becomes fully operational and USD1 enters its next phase of growth,” said Mr Belshe.
If approved, the launch of the World Liberty Trust Company could serve as a full-scale test case for integrating blockchain-based assets into regulated financial infrastructure. Industry observers will closely monitor developments, as they may validate a hybrid model in which digital asset innovation coexists with the rigour of US federal oversight.
Source: Business Wire
