The stablecoin that aims to replace USDT: Trump's $3.3 billion move for federal banking power

Source: Yellow Original Title: The stablecoin that wants to replace USDT: Trump’s $3.3 billion move for federal banking power

Original Link: World Liberty Financial has advanced to place its stablecoin business directly within the U.S. banking system, announcing that its subsidiary, WLTC Holdings LLC, has applied for a national trust bank license to issue and custody its dollar-pegged stablecoin USD1 under federal supervision.

The application to the Office of the Comptroller of the Currency (OCC) seeks approval to establish World Liberty Trust Company, National Association, a proposed trust bank specifically designed to manage the issuance, custody, and conversion of stablecoins.

If approved, the license would allow World Liberty Financial to consolidate the core operations of USD1 within a single regulated entity, effectively bringing the stablecoin fully onshore.

World Liberty Financial stated that the move is aimed at meeting the growing institutional demand for regulated stablecoin infrastructure, as USD1 has already gained traction in cross-border payments, settlement, and treasury operations.

A push towards regulated, full-stack stablecoin banking

According to the company, USD1 has surpassed $3.3 billion in circulation during its first year, making it one of the fastest-growing dollar-pegged stablecoins to date.

The proposed trust bank would serve institutional clients such as cryptocurrency exchanges, market makers, and investment firms, and would also provide digital asset custody and conversion services for other stablecoins.

Under the proposed structure, World Liberty Trust Company would offer three core services: issuance and redemption of USD1, on- and off-ramps between U.S. dollars and USD1, and custody and conversion for USD1 and other approved stablecoins.

The company noted that it intends to launch these services initially fee-free, subject to regulatory approval.

The trust bank would operate under the framework of the GENIUS Act and be subject to federal oversight, including anti-money laundering and sanctions compliance, segregation of client assets, and periodic examinations.

Positioning USD1 as an institutional settlement asset

World Liberty Financial indicated that USD1 is fully backed by U.S. dollar deposits in regulated depository institutions and by funds holding short-term U.S. Treasury obligations.

The stablecoin is currently operational on ten blockchain networks, including Ethereum (ETH), Solana (SOL), BNB Smart Chain (BNB), TRON (TRX), Aptos (APT), among others, enabling near-instant settlement and programmable payments across jurisdictions.

The company argues that a national trust bank license would provide the regulatory clarity that banks, asset managers, and corporations need to scale up stablecoin use, particularly for tokenized settlement and treasury management.

BitGo has supported USD1’s infrastructure and expects to remain a strategic partner as the trust bank comes online and USD1 enters its next growth phase.

What is World Liberty Financial

World Liberty Financial has emerged over the past year as a politically aligned player in the stablecoin sector, positioning itself as a U.S.-focused alternative to offshore dollar tokens.

The project has publicly aligned with President Donald Trump’s broader push to bring digital asset activity under U.S. jurisdiction and strengthen the country’s role in global financial infrastructure.

Unlike previous stablecoin issuers, which mainly operated through state licenses or offshore entities, World Liberty Financial has emphasized federal oversight and institutional-level compliance from the start.

Its decision to seek a national trust bank license places it among a small but growing group of crypto-native companies seeking direct integration with the U.S. banking system rather than parallel financial rails.

The application comes amid increased regulatory scrutiny of stablecoins and ongoing debate in Washington about how digital assets backed by dollars should be supervised.

By seeking an OCC-licensed trust bank, World Liberty Financial signals its intention to compete in the stablecoin market not only on scale but also on regulatory posture.

Licensing approval would mark a significant step toward integrating USD1 into the U.S. financial system, with the potential to reshape how institutions access and use stablecoins for payments and settlement.