World Liberty Trust Company Secures Conditional Approval for Stablecoin

World Liberty Trust Company Receives OCC Approval

The Office of the Comptroller of the Currency (OCC) has granted preliminary conditional approval to World Liberty Trust Company, a national trust bank linked to World Liberty Financial, a cryptocurrency venture associated with former President Donald Trump and his family. This approval is a pivotal moment for the company as it seeks to launch its dollar-pegged stablecoin, USD1.

Details of the Approval

Located in Bay Harbor Islands, Florida, World Liberty Trust Company will take over the issuance and redemption of USD1 from BitGo, which has been serving as the exclusive issuer and custodian. The trust bank aims to provide digital asset custody services and facilitate the conversion of approved stablecoins into USD1. Notably, it will not accept deposits, will lack FDIC insurance, and has no plans to pursue a Federal Reserve master account at this stage.

Regulatory Context

The OCC's decision comes with specific requirements, including a minimum capital of $20 million and compliance with the GENIUS Act, a legislation enacted last year that has seen a surge of crypto firms applying for similar charters. Zachary Witkoff has been appointed as the bank's organizer, director, and president.

Despite concerns regarding potential conflicts of interest involving Trump, his family, and Emirati investors, the OCC has indicated that such issues were not within the scope of its review, emphasizing that World Liberty Financial is not a party to the application. Eric Trump has reportedly signed commitments to ensure passivity for one of the investing entities involved.

Critics, including Senator Elizabeth Warren, have voiced concerns over the OCC's approval of crypto charters, arguing that these entities function like banks without the necessary regulatory oversight. The newly approved bank has 18 months to begin its operations.