The Trump family’s crypto firm, World Liberty Financial, Inc. (WLFI), has made headlines again, this time by applying for a federal banking license. The application, submitted to the Office of the Comptroller of the Currency (OCC) on January 7, 2026, marks a significant milestone for the company as it seeks to bolster its position in the growing cryptocurrency market.
What Is WLFI Aiming For?
WLFI’s primary goal with this license is to formally issue and hold its own dollar-pegged stablecoin, USD1. Additionally, the license would allow the company to offer other financial services, such as holding digital assets and converting stablecoins for its users. These moves align with WLFI’s ambitions to bridge the gap between traditional banking and digital finance.
The Background of WLFI
Launched in 2024, WLFI was founded by Donald Trump Jr., Eric Trump, and several strategic partners, including Zachary Folkman, Chase Herro, Alex Witkoff, and Zach Witkoff. Structurally, the Trump family retains 75% of the revenue generated from token sales and stablecoin operations, consolidating their control of this ambitious enterprise.
WLFI has made progress in expanding its portfolio and was recently valued at around $4.42 billion, trading at $0.1656 per token on CoinMarketCap as of January 2026.
Regulatory Landscape and Controversies
WLFI’s application comes as part of a larger shift in U.S. banking regulations. In December 2025, the OCC granted conditional banking charters to major players like Circle, Ripple, and Coinbase, signaling more acceptance of crypto by traditional banking oversight bodies. However, these charters come with limitations, such as disallowing firms to take customer deposits like traditional banks.
Despite the regulatory advancements, WLFI’s entry into banking hasn’t been without criticism. Observers have questioned potential conflicts of interest, especially with President Donald Trump’s influence on national cryptocurrency policies while his family directly benefits from WLFI’s operations. The company has also faced regulatory scrutiny over past controversies and investigations.
Innovative Offerings and Future Plans
WLFI is not stopping at stablecoins. In December 2025, co-founder Zach Witkoff announced the introduction of tokenized real-world asset products, which are slated to launch in early 2026. This approach aims to revolutionize how tangible assets like real estate and commodities are traded, bringing greater transparency and liquidity through blockchain technology.
The company has also proposed leveraging $120 million from its treasury to enhance USD1’s liquidity, a move that could strengthen its stablecoin offering and increase market confidence.
The Crypto-Banking Debate
The rise of crypto firms seeking banking licenses has sparked debates across the financial industry. While Treasury Secretary Scott Bessent has praised the OCC’s trust charter program for ensuring U.S. leadership in digital finance, critics like FDIC Chairman Martin Gruenberg have raised red flags. Banking groups, including the American Bankers Association, have argued that these charters might undermine traditional banks’ market positions.
Final Thoughts and Implications
As WLFI positions itself at the intersection of cryptocurrency and traditional banking, the firm’s progress reflects broader changes in the financial world. Whether WLFI’s application succeeds or not, its developments could shape the future of how digital finance integrates with more conventional banking systems.
Interested in stablecoins and their utility? Consider exploring Ledger’s Nano S+ Crypto Wallet, a secure device for managing digital assets like WLFI’s USD1.
