Is the stablecoin officially included? The deeper meaning behind World Liberty Financial's application for a banking license

World Liberty Financial has submitted a national trust bank license application to the Office of the Comptroller of the Currency (OCC). This is not just a simple administrative process but a crucial step in the transition of stablecoins from crypto assets to regulated financial instruments. Once approved, USD1 will receive federal compliance endorsement, signifying that stablecoins are gradually moving from the “gray area” toward “mainstream regulation.”

The Triple Significance Behind the Application

Identity Upgrade: From Crypto Asset to Regulated Instrument

According to reports, World Liberty Financial has established a new entity, WLTC Holdings LLC, as the applicant. If approved, this trust bank will be able to legally issue, custody, and redeem USD1 under a unified federal regulatory framework. This is not only a procedural change but an upgrade in status—USD1 will shift from a crypto project token to a federally regulated financial instrument.

Zach Witkoff (proposed President and Chairman of the trust) stated that institutional interest in USD1 is rapidly growing, especially in cross-border payments and corporate treasury management. This reflects a reality: the demand for stablecoins has extended from speculative markets to real institutional applications.

Regulatory Window Is Opening

World Liberty Financial is not an isolated applicant. According to reports, the OCC has conditionally approved several digital asset companies, including Circle and Ripple. This indicates that regulators are systematically opening institutional pathways for compliant stablecoins.

This shift is critical: from a complete ban to a “conditional opening,” reflecting policy adjustments by US regulators. The OCC is gradually recognizing stablecoins as financial instruments, sending a positive signal to the entire industry.

Expanded Business Imagination

According to the application documents, the trust bank will operate under the framework of the GENIUS Act, focusing on stablecoin issuance, redemption, and custody services. But World Liberty Financial’s ambitions go beyond this.

Reports reveal that the project plans to combine stablecoin infrastructure with real-world asset (RWA) tokenization, involving commodities such as oil and natural gas. These RWA tokens will serve as potential collateral assets for USD1, providing a more solid value backing for the stablecoin. Additionally, the company plans to deploy stablecoin liquidity directly through WLFI vault funds, promoting the usage of USD1 on centralized exchanges and DeFi platforms.

The Market Status of USD1

According to relevant information, the performance of USD1 is worth noting:

This data reveals several insights: First, within less than a year of launch, USD1’s market cap has entered the top 50, indicating rapid market recognition. Second, the 24-hour trading volume reaches $246 million, showing relatively sufficient liquidity. Lastly, the price remains stable around $0.999, demonstrating that the fundamental functions of a stablecoin are operating normally.

Comparison with Pioneers

This application places World Liberty Financial among the crypto firms vying for a federal trust license. Circle (issuer of USDC) and Ripple have already received conditional approval from the OCC, and now it’s USD1’s turn.

From a timeline perspective, this is an accelerated process. Since Circle’s approval, the OCC’s attitude toward stablecoins has become clearer. The application from World Liberty Financial appears more systematic—aiming not only to issue stablecoins but also to provide full-stack services such as custody, exchange, and RWA collateralization. This indicates that the competition in stablecoins is shifting from “I can issue tokens” to “I can provide complete financial infrastructure.”

Key Observations

Personally, I believe the greatest significance of this application lies in its demonstration effect. If USD1’s application is approved, it will send a clear signal to the market and regulators: stablecoins are no longer in the “gray area” but can be integrated into the federal regulatory framework as financial instruments. This will encourage more projects to pursue compliance and boost institutional confidence in using stablecoins.

Another point worth noting is the RWA integration. Tokenizing real assets like oil and natural gas as collateral for stablecoins represents a new direction for stablecoin evolution. It not only enhances the asset quality of stablecoins but also opens a channel for traditional assets to enter the blockchain world.

Summary

World Liberty Financial’s application for a national trust bank license marks a transition of stablecoins from “crypto assets” to “regulated financial instruments.” This is not an isolated event but a reflection of the US regulatory authorities gradually opening institutional pathways for compliant stablecoins.

The core takeaway is: once approved, USD1 will receive federal compliance endorsement, greatly expanding its use in payments, settlements, and enterprise applications; meanwhile, RWA integration and liquidity deployment plans indicate that the stablecoin ecosystem is evolving toward more complex and comprehensive financial infrastructure.

It will be important to continue monitoring the OCC’s approval progress and the follow-up actions of other stablecoin projects. These developments will influence the final positioning of stablecoins within the US financial system.