World Liberty Trust Co. has received conditional approval from the OCC to operate as a national trust bank, focusing on the USD1 stablecoin.
World Liberty Trust Co. Receives Conditional Charter from U.S. Regulators
The U.S. Office of the Comptroller of the Currency (OCC) has granted preliminary conditional approval for World Liberty Trust Co. to operate as a national trust bank.
This approval enables World Liberty to manage the issuance of the USD1 stablecoin, which is backed by traditional currency. The OCC's letter indicates that the bank will be authorized to conduct fiduciary and trust-related services.
However, the approval is not final; it depends on the company meeting further preopening requirements. World Liberty Trust intends to take over the issuance of USD1 from BitGo Bank & Trust, which currently serves as the exclusive issuer and custodian.
The application, submitted in January, faced scrutiny from lawmakers due to World Liberty's connections to former President Donald Trump. Senator Elizabeth Warren expressed concerns that the OCC was approving applications from crypto banks without adequate qualifications, suggesting they could undermine essential banking regulations.
Despite these apprehensions, the OCC confirmed it would proceed with World Liberty's application, emphasizing that its review was based on legal and regulatory standards, without political bias. World Liberty Trust has also stated it does not aim to become a federally insured depository institution or seek access to a Federal Reserve master account.
World Liberty Financial's recent investment from an Abu Dhabi firm has further intensified scrutiny around the company's operations and its stablecoin project.
