2026-01-08 03:29:32

World Liberty Financial (WLFI)'s wholly-owned subsidiary WLTC Holdings has submitted an application to the Office of the Comptroller of the Currency (OCC), aiming to obtain a national banking license in the United States. This is a strategic breakthrough—once approved, WLFI will be able to independently issue and custody USD1 stablecoins as a federal trust bank.

Currently, all assets of USD1 are held by BitGo, backed by 100% cash and short-term U.S. Treasury bonds as collateral. However, this setup is about to change. According to WLFI's statement, once the WLTC trust bank is established, the assets of USD1 will be transferred to its own regulatory account, with BitGo transitioning from the trust entity to a strategic partner role.

The significance behind this move cannot be underestimated. Applying for a trust bank license is not only for the independent custody of stablecoins but also signifies that WLFI is building a full-stack financial business system. With federal regulatory approval, WLFI can expand its business scope within a compliant framework, which is beneficial for the long-term development of stablecoins and market confidence. The entire process reflects the gradual integration of traditional financial regulation with the Web3 industry—not a disruption, but an innovative attempt within the existing institutional framework.

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GasFeeCrybaby

· 01-08 03:58

Wait, is BitGo about to be sidelined? Whoever it happens to, it's going to be tough... But on the other hand, if they can really get the OCC license, WLFI's move is indeed bold, they are playing on their own now.

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LiquidityHunter

· 01-08 03:56

Still watching this at 3 AM? BitGo custody transferred to our own account... Will the liquidity depth fluctuate? Need to track the price difference of USD1 across various DEXs.

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SchrodingerWallet

· 01-08 03:53

Wait, OCC has approved it? Is this really true? WLFI is serious about this? BitGo's status is about to be downgraded, from the main character to a supporting role... but the risks of self-custody must be well controlled. This is the correct way to be compliant, much more reliable than those wild-growing stablecoins. Getting a national bank license is like going ashore; there are guarantees behind USD1. The question is, will OCC really approve it? How long will the approval process take... Blending traditional finance with Web3 is quite interesting. Basically, it's about wanting the shell of a financial institution and the freedom of the crypto world—what a clever plan. BitGo has been marginalized in this wave; not sure how the internal reactions are. Innovating within a compliance framework sounds good, but the key is how it is executed. If they really get it, the landscape of the stablecoin sector will be rewritten.

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FlashLoanPhantom

· 01-08 03:45

Oh wow, this just got interesting. WLFI is really going all in, applying for a bank license for stablecoins? What about BitGo? Will they downgrade to a partner? It feels a bit awkward. Is this real? Will the OCC approve it? That's the key point. Another story of "compliant innovation," I've heard too many of these. Let's wait until they actually get the license. But if they do, the stablecoin space might really see a reshuffle.

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nft_widow

· 01-08 03:42

Wait, BitGo was directly sidelined? This transition is happening so quickly, from a custodial entity to a strategic partner... It doesn't seem that simple.

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MetaLord420

· 01-08 03:42

No way, is WLFI really going to get its own banking license? This is heading for a complete breakthrough, haha. BitGo has to step down; it feels like the scale is about to grow. Whether OCC approves or not is a question, but this move is definitely tough. Is the spring of stablecoins coming? Or is it just another prelude to another round of cutting leeks? Honestly, survival still depends on regulation, the fate of Web3. This time it's really not hype; if there's real progress, I remain optimistic.

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BankruptWorker