- World Liberty Financial applied to the OCC for a national trust bank charter to issue USD1 directly.
- This approval facilitates direct issuance and holding of USD1 and fee-free conversions of USD through compliance with the GENIUS Act.
- USD 1 supply broke the $3.3 billion mark within the first year, symbolizing the fast take-up of institutional stablecoins.
World Liberty Financial (WLFI) has taken a major regulatory step toward deeper integration within the U.S. financial system. The Wall Street Journal, one of its subsidiaries has made a de novo application with the U.S. Office of the Comptroller of Currency for a national trust bank charter.
If approved, the charter would allow World Liberty Financial to directly issue and custody the stablecoin USD1 that is backed by dollars. According to a post by Wu Blockchain citing such an improvement will enable the company to have full control while ensuring that it is aligned to the U.S. banking standards.
The proposed trust bank would first aim to serve institutional customers, in which case the company would concentrate on the secure storage of digital assets as well as the use of stablecoins. Later, the company would expand its operations to encompass other areas such as the conversion of stablecoins, among other facets of cryptocurrencies.
Stablecoin Strategy And Regulatory Alignment
World Liberty Financial said that the trust bank would facilitate the issuing, redemption, and storage of stablecoins. The company’s initial plans entail the creation of a conversion facility between U.S. dollars and USD1 that is free. The company aims to ensure transparency while complying with regulations.
In addition, the company highlighted that its proposed bank structure will be compliant with the recently enacted GENIUS Act. The company’s alignment with this act means World Liberty Financial will be conducting business activities within regulatory guidelines at a time when U.S. regulatory authorities are closely monitoring stablecoin issuers.
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World Liberty Reflects Growing Trust Charter Momentum
World Liberty’s application reflects the overall trend being witnessed in the crypto industry where several other crypto companies have been granted preliminary approvals. As it stands currently, only Anchorage Digital has been granted a national trust bank charter out of the sixty others supervised by the OCC.
According to the firm, its USD1 stablecoin has broken $3.3 billion in its first year, reflecting its adoption. World Liberty Financial will become part of a small clique if approved, as its stablecoins will gain acceptance from institutions at a much faster pace at this juncture.
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