Trump's WLFI Seeks U.S. Trust Charter for Stablecoin USD1
- Trump-linked World Liberty Financial applies for U.S. trust charter.
- Seeks to manage USD1 stablecoin under federal banking regulation.
- National trust charter could boost stablecoin credibility and adoption.
World Liberty Financial, linked to Donald Trump, filed for a national trust bank charter with the OCC to manage its USD1 stablecoin under federal supervision.
This move signifies a push for regulated stablecoin management, potentially impacting market trust and adoption.
World Liberty Financial (WLFI), associated with Donald Trump, has submitted an application for a national trust charter with the U.S. Office of the Comptroller of the Currency. This move aims to bring the USD1 stablecoin under federal banking oversight.
Donald J. Trump and his three sons are co-founders of WLFI, and BitGo is a key partner and current custodian of USD1. The national trust charter application by WLFI’s proposed World Liberty Trust Company is central to managing USD1 reserves. “BitGo is proud to have supported USD1’s rapid growth to over $3.3 billion in its first year and looks forward to continuing as a key strategic partner as WLTC becomes fully operational and USD1 enters its next stage of growth.” – Mike Belshe, CEO, BitGo
The move could affect the stablecoin market by increasing the legitimacy of USD1, potentially encouraging further adoption. It aligns with the push for regulated financial infrastructure in the crypto market, potentially affecting existing stablecoins.
Institutional and regulatory perspectives indicate such a charter might impact competitive dynamics in the stablecoin sector. Current digital asset firms like BitGo have previously secured similar charters, potentially elevating trust in USD1.
Securing a national trust charter might position USD1 as a highly regulated stablecoin, enhancing institutional trust and market size. The response from regulators and market participants will shape the broader crypto landscape and infrastructure.
Past actions by the OCC and Federal Reserve suggest possible regulatory acceptance of such trust charters. This could introduce new dynamics in the digital asset space, depending on the industry’s adaptability and responses from financial entities.
