A U.S. regulatory agency has officially approved a bank charter for World Liberty Financial, a crypto-focused project that counts President-elect Donald Trump among its prominent backers. The charter allows the entity to operate with the legal standing of a bank, enabling it to bridge the gap between traditional financial services and decentralized finance (DeFi) protocols.

This development is viewed as a major step for the project, which has faced scrutiny regarding its structure and the involvement of the Trump family. While the approval provides the necessary legal framework for the company to offer regulated financial products, it also raises questions about the intersection of political influence and the burgeoning crypto-banking sector. Supporters argue that this move validates the legitimacy of DeFi, while critics remain concerned about potential conflicts of interest given the incoming administration's stance on digital assets. The company has stated that this charter will allow them to offer a broader range of services, including lending and borrowing, under federal oversight. As of now, the specific operational timeline for these services remains under development, and the company has not yet released a full roadmap for how it will balance its crypto-native roots with the strict compliance requirements of a chartered financial institution.