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OCC Conditional Approval
The Office of the Comptroller of the Currency granted "preliminary conditional approval" to World Liberty Trust Co. for a national trust bank charter tied to World Liberty Financial, a crypto firm connected to President Donald Trump and his family.
“granted "preliminary conditional approval" to World Liberty Trust Co.”
The conditional approval would allow the trust bank to issue USD1 stablecoin and provide custody services for institutional clients, with the process still requiring additional steps including raising capital before the charter is finalized.
In a letter posted on the OCC website, the regulator said the approval was based on "a thorough evaluation of all information available to the OCC" and that final approval would not be granted until the company meets additional pre-opening requirements.
The OCC also said career employees reviewed the application and that the bank’s proposed actions include issuing dollar-backed stablecoins and holding and managing assets for customers.
Witkoff Welcomes Scrutiny
World Liberty Financial CEO Zach Witkoff said in a statement, "We welcome continuous scrutiny from Federal regulators for many years to come," and he is also chairman of the OCC-regulated trust company.
The OCC approval also intensified political scrutiny, with CNBC reporting that Sen. Elizabeth Warren said, "President Trump is now the first President in history to approve, operate, and supervise his own bank."
CoinGape framed the charter as enabling the firm to issue its USD1 stablecoin and custody the reserves, while also noting that the WLFI token climbed over 2% following the announcement.
In response to the controversy, Americans for Financial Reform Education Fund said the OCC "exceeded its statutory authority" in granting the conditional bank charter to a trust bank controlled by World Liberty Financial.
What Comes Next
Final approval remains contingent on meeting pre-opening requirements, and the OCC letter said the trust bank would focus on services tied to World Liberty Financial’s USD1 stablecoin, assuming the role from BitGo Bank & Trust.
“Final approval won’t be granted until the company meets additional “preopening requirements,””
The charter plan would let World Liberty Trust issue USD1 to institutional clients on a nationwide basis and provide digital asset custody services as a fiduciary, primarily to USD1 customers and other institutional clients.
Breitbart reported that World Liberty must meet conditions including maintaining at least $20 million in capital and keeping at least half of that in liquid assets, and that the OCC can modify, suspend, or rescind the approval if circumstances change.
The stakes extend beyond the charter itself, as the Americans for Financial Reform Education Fund warned that the decision "threatens financial stability" and said it could lead to public bailouts of foundering crypto banks.
