World Liberty Financial, the Trump-linked cryptocurrency venture, secured a conditional bank charter to issue USD1 stablecoin. The move transfers stablecoin issuance from BitGo, the digital asset custodian, to the newly chartered World Liberty Trust Company.
The conditional charter marks a regulatory win for the venture, which counts Steve Witkoff, Trump's Middle East envoy, among its backers. The structure places stablecoin issuance under bank oversight rather than the current arrangement where BitGo handles minting and redemption. USD1 trades as a 1:1 reserve-backed stablecoin competing against established players like USDC, USDT, and DAI.
This development unfolds as the stablecoin landscape shifts toward banking partnerships. Regulators have pushed issuers to work with chartered financial institutions to back reserve claims. World Liberty's charter confirms the trend. The conditional designation means the company must meet additional requirements before full operational status, likely including reserve verification and compliance protocols.
BitGo's exit from USD1 issuance reflects broader consolidation in custody and stablecoin services. The firm continues managing digital assets but no longer bears the regulatory burden of active stablecoin minting. World Liberty assumes that responsibility with its new banking status.
USD1 launched earlier this year as part of World Liberty Financial's expansion into crypto infrastructure. The token sits far behind Tether's USDT, which dominates stablecoin market cap, but offers an alternative for users seeking politically aligned products or additional stablecoin diversity.
The bank charter positions World Liberty for broader financial services beyond stablecoin issuance. Charter holders can offer deposit-taking, lending, and other banking functions. Trump's crypto agenda, which centers on reducing regulatory friction and building domestic digital asset infrastructure, appears reflected in this approval.
Stablecoin regulation remains fragmented across U.S. jurisdictions. Some states offer special-purpose depository institution charters. Others lack clear frameworks. World Liberty's conditional charter demonstrates at least one regulatory pathway forward for stablec