Trump-Linked World Liberty Financial Seeks Trust Bank License, TradFi Meets Stablecoins

Pursuit of a National Trust Bank Charter

World Liberty Financial has filed a de novo application through a subsidiary, World Liberty Trust Company, to establish a national trust bank under the oversight of the Office of the Comptroller of the Currency.

This structure would allow the firm to directly issue, redeem, and custody its own stablecoin, USD1, without relying on third-party banks. Trust banks are permitted to offer custody and payment related services without taking retail deposits, making them a popular route for crypto firms seeking regulatory clarity.

The move mirrors similar efforts by other major crypto issuers that aim to operate fully within the federal banking framework, positioning stablecoins as regulated financial instruments rather than peripheral crypto assets.

Rapid Growth of the USD1 Stablecoin

USD1 has expanded rapidly since its launch in early 2025. World Liberty Financial reports that the stablecoin has surpassed 3.3 billion dollars in circulation, making it one of the fastest growing dollar-pegged digital assets to date.

The company attributes this growth to institutional adoption, exchange listings, and integration with major crypto trading platforms. USD1 is designed to maintain a one-to-one peg with the US dollar and is fully backed by high quality liquid assets.

Strategic Shift From DeFi to TradFi

World Liberty Financial originally positioned itself as a decentralized finance project, but its strategy has evolved significantly. The proposed trust bank would focus on institutional clients rather than retail users.

Key services include stablecoin issuance and redemption, institutional custody, and seamless conversion between US dollars and USD1 without transaction fees. This full-stack approach places the firm closer to TradFi infrastructure while maintaining blockchain-based settlement.

The company has structured the bank to comply with the GENIUS Act, a comprehensive federal stablecoin framework enacted in mid-2025. This compliance focus is designed to appeal to institutional investors who require regulatory certainty before adopting digital assets at scale.

Leadership, Governance, and Political Context

The proposed trust company lists Zach Witkoff as President and Chairman. He is the son of Steve Witkoff, a senior diplomatic envoy in the Trump administration.

President Trump and his sons are listed as co-founders of the broader project, but World Liberty Financial states that the Trump family holds non-voting interests. This structure is intended to limit governance conflicts and separate political influence from daily operations.

The project’s growth accelerated after the 2024 US election, when pro-crypto executive orders and regulatory reforms in early 2025 created a more favorable environment for digital asset firms seeking integration with TradFi.

Why This Matters for TradFi and Crypto Markets

This development represents a significant moment for TradFi and crypto convergence. A federally regulated trust bank issuing a stablecoin backed by US Treasuries bridges the gap between blockchain settlement and traditional financial safeguards.

For TradFi institutions, this model reduces counterparty risk and regulatory uncertainty. For crypto markets, it legitimizes stablecoins as core financial infrastructure rather than speculative instruments.

Making Money From the TradFi Stablecoin Shift

• For TradFi investors, regulated stablecoin banks open opportunities in payments, treasury management, and blockchain-based settlement systems. Stablecoins backed by government securities may also influence short term funding markets and liquidity flows.
• For crypto traders on Gate.com, stablecoin expansion is a key market signal. Rising stablecoin supply often correlates with higher trading activity and liquidity across crypto markets. Institutional stablecoin adoption can also reduce volatility by improving on-chain dollar access.
• Understanding how TradFi entities integrate stablecoins helps traders anticipate shifts in market structure, liquidity depth, and capital rotation.

Conclusion

World Liberty Financial’s pursuit of a national trust bank license highlights how TradFi and crypto are converging faster than ever. By seeking to issue and custody USD1 within the US banking system, the firm is positioning itself at the intersection of regulation, institutional finance, and blockchain technology.

For investors and traders, this move underscores the growing importance of stablecoins as financial infrastructure. Whether viewed through a TradFi or crypto lens, regulated stablecoin banks are reshaping how money moves in digital markets.

Why Use Gate.com

Gate.com is a crypto focused trading platform designed for users who track TradFi developments to inform digital asset strategies. As stablecoins become increasingly integrated into regulated financial systems, Gate.com provides traders with access to deep liquidity and diverse markets shaped by these macro shifts.

FAQs

1. What is World Liberty Financial trying to do
   It is seeking a national trust bank license to issue and custody its USD1 stablecoin directly.
2. Why is a trust bank important for stablecoins
   A trust bank allows regulated custody, issuance, and redemption without relying on third-party banks.
3. How large is the USD1 stablecoin
   USD1 has grown to over $3.3 billion in circulation since its 2025 launch.
4. How does this affect TradFi
   It integrates stablecoins into federally regulated banking infrastructure.
5. Why should crypto traders care
   Stablecoin growth influences liquidity, trading volume, and market stability across crypto exchanges like Gate.com.