World Liberty Financial is moving to embed its stablecoin operations deeper into the U.S. banking system. Its USD1 token now circulates over $3.3 billion, and WLTC Holdings LLC has filed a de novo application with the Office of the Comptroller of the Currency to establish a federally supervised trust bank. The proposed structure consolidates USD1 issuance, custody, and conversion under a single entity, aligning stablecoin activities with traditional trust banking standards.
Institutional focus shapes charter strategy
World Liberty Trust Company will target institutional clients—exchanges, market makers, and investment firms—operating as an infrastructure provider rather than a retail platform. Under federal supervision, the trust bank will offer three core services: stablecoin issuance, fiat on-ramp services, and digital asset custody. USD1 minting and redemption are fee-free at launch, and dollar-to-USD1 conversions also carry no initial charges. Custody extends to USD1 and other approved stablecoins, with client assets held segregated and independently managed. Zach Witkoff noted that institutions already rely on USD1 for cross-border efficiency and that federal supervision would streamline core operations.
Compliance blueprint and reserve backing
WLTC will operate under the GENIUS Act compliance framework, incorporating AML controls, sanctions screening, and advanced cybersecurity measures. Mack McCain, general counsel of World Liberty Financial, will serve as trust officer overseeing fiduciary duties and regulatory compliance. McCain stated that federal trust supervision brings regulatory clarity for digital asset custody, enabling broader institutional participation. USD1 remains fully backed by U.S. dollars and short-duration Treasury obligations, held at regulated depository institutions. The stablecoin runs on 10 blockchain networks, including Ethereum, Solana, and TRON, supporting near-instant settlement and programmable enterprise payments. BitGo CEO Mike Belshe confirmed continued support for the charter process, calling BitGo a strategic partner as USD1 expands.
Parallel crypto case highlights legal scrutiny
A separate crypto crime case resurfaced as Ilya Lichtenstein—convicted of laundering proceeds from the Bitfinex hack—was released early under the First Step Act signed by President Donald Trump. The case involved roughly 120,000 Bitcoin, valued at about $10.9 billion at current $90,702 per coin. The early release underscores ongoing tensions between sentencing reform and the magnitude of crypto-related financial crimes.