Which bank sought a stablecoin charter?

TLDR

World Liberty Trust Company, a proposed national trust bank from World Liberty Financial, applied for a U.S. banking charter to issue and manage its USD1 stablecoin under the OCCs oversight (application report).

1. The charter targets issuance, custody, and conversion of USD1 within a single regulated entity (FT coverage).
2. USD1 reportedly reached over $3.3 billion in circulation in its first year (Reuters).
3. National trust banks are overseen by the OCC and cannot take deposits or make loans (FT coverage).

Deep Dive

1. Charter Goal

The proposed charter would let World Liberty Financial bring USD1s issuance, custody, and conversion under one federal framework with OCC supervision. This centralization reduces state-by-state licensing and aligns with newer U.S. stablecoin rules aimed at clearer oversight (FT coverage; Politico overview).

2. USD1 Scale

World Liberty said USD1 crossed about $3.3 billion in circulation within its first year, positioning it as a mid-tier stablecoin by size and suggesting early institutional uptake for cross-border payments and treasury use cases (Reuters).

1. A larger circulating base can enhance liquidity and redemption confidence if reserves and disclosures remain robust.
2. Institutional adoption often hinges on regulatory clarity and custody optionsboth are targeted by the charter move (Politico overview).

3. Trust Bank Mechanics

A national trust bank is different from a full-service bank. It cannot accept deposits or make loans, but it can custody assets and run conversion and settlement servicesfunctions that map directly to stablecoin operations (FT coverage).

1. The OCC supervises roughly 60 national trust banks, setting exam cadence and compliance standards for custody and fiduciary duties (Reuters).
2. This path can bring stablecoin activities into a regulated perimeter without full consumer banking powers (Politico overview).

Conclusion

Answer: World Liberty Trust Company (from World Liberty Financial) sought the stablecoin-focused banking charter. The aim is to wrap USD1 issuance, custody, and conversion in OCC oversight, which could improve institutional confidence and operational efficiency, provided reserves, governance, and compliance remain strong (Reuters; FT coverage).