The Office of the Comptroller of the Currency (OCC) has granted preliminary approval for World Liberty Financial, a cryptocurrency venture tied to former President Donald Trump, to establish a national trust bank. The approval was announced Friday and allows the entity to issue and manage its USD1 stablecoin, a digital token designed to maintain a value equivalent to one U.S. dollar. The move comes after months of scrutiny and debate over the company's ties to Trump and potential conflicts of interest. World Liberty Trust Company, the proposed institution, would operate under the oversight of the OCC and would be based in Bay Harbor Islands, Florida. If it secures final approval, the trust bank will be authorized to issue and redeem USD1, hold the assets backing the stablecoin, and provide custodial services for digital assets. However, it will not be permitted to accept federally insured deposits or engage in traditional lending activities. The OCC emphasized that the proposed operations align with federal banking laws and that the GENIUS Act, passed by Congress, explicitly permits such activities. The USD1 stablecoin, launched by World Liberty Financial in March 2025, has become the fourth-largest stablecoin by market value, reaching approximately $4 billion. Currently, USD1 is issued and managed by BitGo Bank & Trust, which also holds the reserves backing the token. Under the new arrangement, World Liberty Trust would assume these responsibilities, placing the stablecoin under the direct supervision of a federal banking regulator. This shift aims to enhance transparency and regulatory compliance for institutional clients, including cryptocurrency exchanges and investment firms. The approval process faced opposition from several lawmakers, notably Sen. Elizabeth Warren, the ranking Democrat on the Senate Banking Committee. During a February hearing, Warren expressed concerns about the potential for corruption due to Trump’s financial stake in the company. She called on the Comptroller of the Currency, Jonathan Gould, to reject the application, arguing that approving it would make him complicit in wrongdoing. Warren also requested access to the unredacted version of the application and raised questions about the disclosure of investors linked to the United Arab Emirates. Gould responded by stating that he would not comment on confidential sections of the application and reiterated that the OCC would adhere to its standard procedures. He also noted that the only political pressure he had received came from Warren herself. The OCC confirmed that the application was evaluated by career employees and that ongoing oversight would be conducted by career examiners, ensuring adherence to statutory duties and ethical standards. The OCC also addressed concerns regarding foreign ownership, clarifying that World Liberty Financial itself is not seeking a charter and that foreign investors mentioned by critics would not own or control the proposed bank. Additionally, three investors, including a company led by Eric Trump, have committed to not seeking management roles or influencing the bank’s policies. Zach Witkoff, CEO of World Liberty Financial and son of Trump’s special envoy, will serve as the trust bank’s president and a director. The proposed board includes Robert Witkoff, Scott Alper, and two independent directors. The OCC’s decision marks a significant step forward for World Liberty Financial, though the approval remains conditional. The company must satisfy a range of requirements, including maintaining at least $20 million in capital, with at least half held in liquid assets. The OCC retains the right to adjust, suspend, or revoke the approval if circumstances change. As the process moves forward, further scrutiny and public debate are likely to continue.
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