- USD1’s rapid growth forces a regulatory shift toward federally supervised banking
- Stablecoin adoption accelerates as institutions demand clearer U.S. trust oversight
- Crypto regulation tightens as major cases and banking ambitions collide
World Liberty Financial is seeking closer integration with the U.S. banking system as USD1 circulation exceeds $3.3 bn, confirming a national trust charter application. 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 operations with U.S. trust banking standards. USD1 usage has expanded among institutions handling settlement and treasury operations, highlighting the need for a clearer regulatory framework. Zach Witkoff said institutions already rely on USD1 for cross-border efficiency, adding that federal supervision would streamline core services.
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Institutional demand drives charter strategy
World Liberty Trust Company plans to focus on institutional clients, including exchanges, market makers, and investment firms, while operating as an infrastructure provider rather than a retail platform. The company also plans to support stablecoin conversion services into USD1, with transactions executed at prevailing market rates without promotional incentives.
Under the proposed framework, the trust bank will offer three core services under federal supervision, covering stablecoin issuance, fiat on-ramp services, and digital asset custody. USD1 minting and redemption will launch without fees, while conversions from dollars to USD1 will also incur no initial charges.
Custody services will extend to USD1 and other approved stablecoins, with customer assets kept segregated and independently managed.
Compliance framework and reserve oversight
WLTC will operate in compliance with the GENIUS Act, with a framework that includes AML controls, sanctions screening, and advanced cybersecurity measures. Mack McCain, general counsel of World Liberty Financial, will serve as trust officer and oversee fiduciary operations and regulatory compliance.
McCain said federal trust supervision provides regulatory clarity for digital asset custody, which supports broader institutional participation. USD1 remains fully backed by U.S. dollars and short-duration U.S. Treasury obligations held at regulated depository institutions.
The stablecoin operates across 10 blockchain networks, including Ethereum, Solana, and TRON, enabling near-instant settlement and programmable enterprise payments. BitGo CEO Mike Belshe confirmed continued support as the charter process advances and said BitGo remains a strategic partner during USD1’s expansion.
Separate crypto case highlights regulatory and legal scrutiny
A major crypto crime case resurfaced following an early release tied to U.S. sentencing reform, which Ilya Lichtenstein linked to earned time credits under the First Step Act. The law was signed by President Donald Trump during his administration, after Lichtenstein pleaded guilty to laundering funds connected to the Bitfinex breach. The case involved nearly 120,000 Bitcoin, which at $90,702.78 per coin totals about $10.9 bn and remains financially significant.
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