WLFI-Affiliated Entity Targets Regulated Banking Status
A company affiliated with WLFI has submitted an application for a U.S. national trust bank license, marking a significant step toward deeper integration with the traditional financial system. The move reflects growing interest among crypto-native firms in operating under established banking frameworks to gain credibility and long-term stability.
Crypto Asset Custody at the Core of the Strategy
The proposed trust bank intends to provide secure digital asset custody services, a key requirement for institutional investors such as hedge funds, asset managers, and corporate treasuries. By offering regulated custody, the entity aims to address ongoing concerns around asset security, compliance, and operational risk in the crypto sector.
Expansion Into Stablecoin Exchange and Settlement
Alongside custody services, the firm plans to support stablecoin exchange and settlement operations, enabling faster and more efficient digital payments. This could position the trust bank as a critical infrastructure provider for stablecoin issuers, fintech platforms, and blockchain-based payment networks.
Emphasis on U.S. Regulatory Compliance and Oversight
Applying for a national trust bank license demonstrates a regulation-first approach, subjecting the entity to federal oversight, capital requirements, and strict governance standards. This approach aligns with increasing regulatory scrutiny of digital assets in the U.S. and signals a commitment to transparency and consumer protection.
Potential Boost for Institutional Crypto Adoption
If approved, the license could strengthen confidence among traditional financial institutions looking to engage with crypto markets. The move may help bridge the gap between legacy banking infrastructure and blockchain-based finance, accelerating institutional adoption of crypto custody and stablecoin-driven financial services.
