World Liberty Financial (WLFI-USD) is taking a big step to become part of the regular banking world. On Wednesday, as reported first by Wall Street Journal, a part of the company called World Liberty Trust asked a government agency for a special banking license. If they get this license, they will be supervised by the same federal officials who watch over the biggest banks in the country.
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Right now, the company has to rely on other businesses to hold and protect its digital money. Having its own license would change that. A charter could help World Liberty develop and launch products faster by removing dependencies on third-party providers, said Mack McCain, a top lawyer for the company.
Digital Dollar Grows Quickly in the Market
World Liberty has its own stablecoin named USD1. This is a digital token meant to always be worth one U.S. dollar. It has grown very fast and is now worth a total of $3.4 billion.
A big part of this growth happened because an outside investor used $2 billion worth of these tokens to buy a piece of the Binance crypto exchange. By getting a banking license, World Liberty hopes to attract more big professional investors and market experts. They want to make it easy for these large groups to store their crypto and switch between different types of digital money.
Company Structure Plans to Stop Conflicts of Interest
Some people are worried that a crypto bank owned by the President’s family could cause problems or unfair advantages. They point to the fact that President Trump recently gave a legal pardon to the founder of Binance.
To answer these concerns, the company says they have a plan to keep things fair. Zach Witkoff, who is set to lead the new bank, explained that the Trump family won’t have any say in the daily work or decisions, according to the Wall Street Journal. “We structured this trust company intentionally to avoid conflicts of interest,” he stated. The business was started by the President’s three sons—Eric, Donald Jr., and Barron—along with Witkoff.
Other Big Crypto Firms Race to Get Banking Licenses
This move comes at a time when many other big crypto firms are also trying to get banking licenses. In December, the government gave the green light to several other companies like Ripple and Circle (CRCL).
Everything is being done to follow a new law called the Genius Act. President Trump signed this law last summer to make sure digital coins are safe and follow the rules against money laundering. By getting a federal license, World Liberty is trying to prove that their digital dollar is a safe and legal tool for the biggest companies in the world to use.
Investors can track the prices of their favorite cryptos on the TipRanks Cryptocurrency Center. Click on the image below to explore the tool.
