Traditional banks warn crypto trust charters could create a two-tier banking system.
World Liberty Financial, a decentralized finance (DeFi) project backed by President Donald Trump, revealed that its subsidiary has applied for a national trust bank charter.
This move positions the company to offer services to institutional clients, including exchanges, investment firms, and more. Nevertheless, traditional banking groups are voicing concerns about the swift rise of crypto trust charters.
In the press release, WLFI highlighted that WLTC Holdings LLC submitted a de novo application to the Office of the Comptroller of the Currency (OCC) to launch the World Liberty Trust Company, National Association (WLTC).
The proposed entity would operate as a national trust bank focused on stablecoin operations. WLTC aims to provide three core services: issuing and redeeming USD1 without fees at launch and offering fiat on- and off-ramps between US dollars and USD1 at no initial cost. The trust bank will also provide custody and conversion services for USD1 and select other stablecoins at market rates.
“USD1 grew faster in its first year than any other stablecoin in history, Institutions are already using USD1 for cross-border payments, settlement, and treasury operations. A national trust charter will allow us to bring issuance, custody, and conversion together as a full-stack offering under one highly regulated entity,” Zach Witkoff, the proposed President and Chairman of World Liberty Trust Company, said.
World Liberty Financial stated that WLTC will operate under full federal supervision and comply with the GENIUS Act, implementing strict AML, sanctions screening, and cybersecurity standards.
Customer assets will be segregated, reserves will be independently managed, and operations will be subject to regular examinations. Mack McCain, General Counsel of World Liberty Financial, is set to serve as Trust Officer.
“The OCC has supervised trust activities for over a century. WLTC will operate under that same framework….that gives banks, asset managers, and corporations the regulatory clarity they need to further expand their use of USD1,” McCain stated.
National trust charters enable companies to serve clients nationwide under a unified federal system, thereby bypassing state-by-state licensing requirements. These trust entities, however, do not offer traditional deposit or lending services. Instead, they focus on custody, settlement, and fiduciary roles. They also do not hold FDIC insurance.
This application follows a broader trend of digital asset firms seeking federal trust charters. In December 2025, the OCC granted conditional charters to five digital asset companies: Circle, Ripple, Fidelity Digital Assets, BitGo, and Paxos. The bank regulator emphasized that the applicants underwent the same “rigorous review” as any national bank charter applicant.
“New entrants into the federal banking sector are good for consumers, the banking industry and the economy,” Comptroller of the Currency, Jonathan V. Gould, noted.
However, the US banking groups have pushed back against the OCC’s approval. The American Bankers Association and Independent Community Bankers of America argue that the move creates a two-tier banking system.
They added that crypto firms benefit from national charters while avoiding key regulatory requirements applied to insured banks, raising concerns over uneven oversight and potential consumer confusion.
