Trump Crypto Firm Under Fire for Saudi Stake in New Bank

World Liberty Financial Secures Preliminary Approval for National Trust Bank

A cryptocurrency venture with ties to former President Donald Trump, World Liberty Financial, is moving forward with plans to establish a federally chartered national trust bank. The Office of the Comptroller of the Currency (OCC) granted preliminary conditional approval for the venture earlier this month.

An entity reportedly linked to Sheikh Tahnoon bin Zayed al Nahyan and his co-investors holds a significant 49% stake in the holding company for World Liberty Financial, representing the largest ownership share within that structure.

Sheikh Tahnoon and Co-Investors Own Majority Stake in Holding Company

Sheikh Tahnoon bin Zayed al Nahyan, who also serves as the UAE’s national security adviser, along with co-investors, collectively own 49% of WLTC Holdings. This entity serves as the holding company for World Liberty Financial.

The proposed bank is slated to handle the issuance, redemption, and safeguarding of USD1, a stablecoin backed by the U.S. dollar that World Liberty launched last year. This initiative aims to integrate World Liberty’s stablecoin operations with a federally chartered trust bank.

OCC Approval is Preliminary and Conditional

It is important to note that the OCC’s recent action is a preliminary and conditional approval, not a final banking charter. The approval pertains to World Liberty Financial’s proposal to establish a federally chartered national trust bank.

The bank’s intended functions are to manage the issuance, redemption, and safeguarding of USD1. The conditional approval does not constitute a final charter.

Significant Foreign Investment in Proposed Bank Structure

According to individuals familiar with the matter who spoke to The Wall Street Journal, an entity connected to Sheikh Tahnoon bin Zayed al Nahyan and his co-investors possesses the largest stake, at 49%, in World Liberty’s banking holding company. The Journal had previously reported that Sheikh Tahnoon backed a $500 million investment in World Liberty Financial last year, in exchange for a 49% equity stake in the company.

This reported holding company stake positions an entity associated with Sheikh Tahnoon and his co-investors within the ownership framework of the proposed bank.

Sheikh Tahnoon bin Zayed al Nahyan is the national security adviser of the United Arab Emirates and the brother of the country’s president. He oversees a vast business empire estimated to be worth over $1.3 trillion, funded by both his personal wealth and state resources, according to The Journal.

Expansion of Business Ties with Foreign Official

This new venture signifies an expansion of the business relationship between the Trump-linked cryptocurrency company and a prominent foreign government official, as reported by The Journal. World Liberty Financial is pursuing the establishment of a proposed bank whose holding company ownership includes an entity linked to Sheikh Tahnoon and his co-investors.

The OCC’s preliminary conditional approval, coupled with the reported ownership structure, are key components of this proposed venture. The bank’s planned role is directly tied to the issuance, redemption, and safeguarding of USD1.

The approval remains in its preliminary and conditional phase. World Liberty Financial’s proposed bank has not yet received its final charter. For the time being, the bank’s stated purpose is to issue, redeem, and safeguard USD1.