Overview
- The Office of the Comptroller of the Currency (OCC) has granted preliminary conditional approval for World Liberty Trust Company, a national trust bank associated with World Liberty Financial, linked to the Trump family.
- This trust bank will not accept deposits, will not have FDIC insurance, and will not pursue a Federal Reserve master account at this time.
- Concerns about potential conflicts of interest involving Trump, his family, and Emirati investors were raised, but the OCC stated these issues were beyond its review scope.
The OCC announced on Thursday that it has given preliminary conditional approval for World Liberty Trust Company, a national trust bank related to World Liberty Financial, a cryptocurrency initiative supported by former President Donald Trump and his family. This development marks a significant step forward for the company’s dollar-pegged stablecoin.
World Liberty Trust Company, National Association, will be located in Bay Harbor Islands, Florida. As outlined in the decision letter from the OCC, the bank intends to issue and redeem USD1, the stablecoin of World Liberty, taking over this function from BitGo, which currently serves as the exclusive issuer and custodian.
Myriad: Will the Clarity Act be signed into law in 2026? Click to make your prediction.The institution will also offer digital asset custody services and enable clients to convert approved stablecoins into USD1. As a trust bank, it will not take deposits, will not have FDIC insurance, and for the present, it will not seek a Federal Reserve master account. The bank has pledged to remain outside the definition of a "bank" as per the Bank Holding Company Act.
Zachary Witkoff, a co-founder of World Liberty, is designated as the organizer, director, and president of the bank. The approval comes with stipulations, including a requirement for $20 million in minimum capital and adherence to the GENIUS Act, a stablecoin law enacted last year that has prompted a surge of crypto companies seeking similar charters.
As previously reported by Decrypt, the OCC has approved national trust charters for a number of digital asset firms, including Circle, Ripple, Paxos, Fidelity, and BitGo. World Liberty submitted its charter application earlier this year.
The association with Trump raised concerns during the review process. The OCC noted it received comments highlighting potential conflicts of interest involving the president, his family, the Witkoffs, and Emirati investors in World Liberty, alongside inquiries regarding the Emoluments Clause.
However, the regulator largely dismissed these concerns as not relevant to its review, emphasizing that World Liberty Financial is not a party to the application. Eric Trump signed passivity commitments for one of the investing entities involved.
Senator Elizabeth Warren has criticized the OCC's approval of crypto charters, labeling them as illegal and asserting that these firms operate like banks while avoiding the necessary regulatory protections. The bank has a period of 18 months to commence operations.