World Liberty Trust Application Seeks National Bank Charter for USD1

Breaking Down the Impact of the World Liberty Trust Application

The Trump family's move into the crypto world just got a lot more serious. On January 7, 2026, the group known as World Liberty Financial (WLF) confirmed it is trying to become an official bank. Specifically, their subsidiary filed a World Liberty Trust application with a top U.S. regulator called the OCC. If they get the green light, this would allow them to run their own "national trust bank." This is a big deal because it would let them handle their stablecoin, USD1, entirely on their own instead of relying on outside companies like BitGo.

Source:X(formerly Twitter)

The timing of this World liberty trust application is no accident. It comes right after a new law called the GENIUS Act passed in late 2025, which finally gave clear rules for how digital dollars should work in America.

Breaking Down the World Liberty Trust(WLT) Application and USD1

So, what does this organization actually change?

Right now, the USD1 stablecoin has about $3.4 billion in circulation. That is a huge amount of money, but WLT has to use other banks and partners to hold the actual cash that backs those tokens. By getting their own charter from the OCC, they can bring everything "under one roof."

What the New Bank Will Do? 

According to the official filing, the new bank won't be for regular people to open checking accounts. Instead, it will focus on big "institutional" clients who think of them as the whales of the financial world, like investment firms and crypto exchanges.

One of the biggest perks mentioned in the Organization is that they want to offer "fee-free" swaps. This means these big companies could trade their U.S. dollars for USD1 without paying the usual extra costs. This could make USD1 a much more popular choice for professional traders.

The 2026 Crypto Banking Wave

World Liberty isn't the only one knocking on the OCC's door. Their World Liberty Trust application follows a busy month where other major players like Ripple and Circle also got preliminary approval for similar licenses. This shift is happening because the federal regulatory framework is finally opening up.

A "trust bank" is a bit different from a normal bank. It cannot give out loans or take your monthly paycheck deposits. Instead, its job is to act as a "fiduciary." This means its only goal is to keep assets safe and make sure every single USD1 token is backed 1:1 by real cash or safe government bonds.

Dealing with Conflict of Interest

Because this project involves the President's family, there has been plenty of talk about conflicts of interest. The team behind the WLT says they have planned for this. The Trump family holds "non-voting" shares, which means they won't be making the daily business decisions. The goal is to keep the bank's operations separate from politics while following all the standard anti-money laundering rules.

Conclusion

The World Liberty Trust application is a clear sign that the "Wild West" days of crypto are ending. By asking for a federal charter, the Trump team is trying to build a bridge between traditional banking and the new world of digital finance. It is a smart business move: if you own the bank that mints the stablecoin, you control the most profitable part of the ecosystem. While critics will worry about the political ties, the fact remains that USD1 is positioning itself to be a massive player in the institutional market throughout 2026.

YMYL Disclaimer

This article is for informational purposes only and should not be considered financial, legal, or investment advice. Cryptocurrency investments carry risk. Readers should conduct independent research or consult a  professional before making financial decisions.