The Office of the Comptroller of the Currency (OCC) has granted preliminary conditional approval for a national trust bank charter to World Liberty Trust Company, a cryptocurrency venture linked to the Trump family. This development, reported on Thursday, represents a significant step for the company, which plans to issue and redeem its stablecoin, USD1, and provide digital-asset custody services.
According to the OCC’s decision letter, World Liberty Trust Company, National Association, will be based in Bay Harbor Islands, Florida. The institution intends to take over the role of issuing and redeeming USD1 from BitGo, the current exclusive issuer and custodian. Beyond stablecoin operations, the bank will offer digital-asset custody as a fiduciary, enabling clients to convert approved stablecoins into USD1. Importantly, as a trust bank, it may not accept deposits, carry FDIC insurance, or currently seek a Federal Reserve master account. The company has committed to operating outside the definition of a “bank” under the Bank Holding Company Act.
The OCC’s approval is subject to several conditions. World Liberty Trust Company must meet a minimum capital requirement of $20 million and comply with the GENIUS Act, a law enacted last year that has spurred a number of crypto firms to pursue similar charters. The company has 18 months to establish its operations and open for business.
This follows previous OCC approvals of national trust charters for other digital-asset companies, including Circle, Ripple, Paxos, Fidelity, and BitGo. World Liberty applied for its charter earlier this year.
The Trump family’s involvement with World Liberty has prompted objections during the review process. The OCC acknowledged receiving comments flagging potential conflicts of interest involving the president, his family, the Witkoff family (with Zachary Witkoff listed as organizer, director, and president of World Liberty), and Emirati investors associated with World Liberty. Questions were also raised concerning the Emoluments Clause. However, the OCC largely dismissed these concerns as outside the scope of its review, noting that World Liberty Financial itself is not a party to the application. Passivity commitments were signed by Eric Trump for one of the investing entities.
Separately, Senator Elizabeth Warren has called the OCC’s crypto charter approvals illegal, arguing that these firms function as banks while circumventing the safeguards typically associated with that designation.
While the OCC has granted preliminary conditional approval, uncertainties remain regarding the company’s successful launch within the stipulated timeframe and the full implications of its compliance with the GENIUS Act. The regulator’s dismissal of conflict of interest concerns also leaves room for ongoing discussion.
Why This Matters
The materials describe a narrow update: The OCC granted preliminary conditional approval for a national trust bank charter to World Liberty Trust Company, which plans to issue and redeem its stablecoin, USD1, and provide digital-asset custody. Whether World Liberty Trust Company will successfully open within 18 months.
Broader Context
Source materials place the factual news in this context: The Office of the Comptroller of the Currency on Thursday granted preliminary conditional approval for a national trust bank tied to World Liberty Financial, the crypto venture backed by President Donald Trump and his family, clearing a major hurdle for the firm’s dollar-peggedstablecoin.
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