Key Points
- World Liberty Trust Company received preliminary conditional approval from the OCC for a federal bank charter on Friday
- The Trump-backed firm intends to assume USD1 stablecoin issuance responsibilities from BitGo Bank and Trust
- USD1 holds a $4 billion market capitalization, positioning it as the fourth-largest stablecoin globally
- Senator Elizabeth Warren and fellow Democrats are preparing legislation to prevent senior government officials from bank ownership or control
- Several crypto companies, including Coinbase, Paxos, BitGo, Ripple, and Circle, have secured similar conditional OCC approvals
President Donald Trump’s crypto venture, World Liberty Financial, has obtained conditional authorization from a federal banking regulator to function as a national trust bank.
In a letter made public on Friday, the Office of the Comptroller of the Currency provided preliminary authorization. This approval permits World Liberty Trust Company to provide fiduciary and trust services connected to its USD1 stablecoin product.
Scope of the Authorization
World Liberty Trust Company intends to assume control of USD1 stablecoin operations from BitGo Bank and Trust, the current exclusive issuer and custodian. The institution will additionally provide digital asset custody solutions for institutional clientele.
With a market capitalization of $4 billion, USD1 currently holds the position as the fourth-largest stablecoin in the market, trailing Tether and USD Coin.
The charter application was submitted in January. According to World Liberty, the license will enable the company to provide stablecoin issuance and redemption capabilities, on-ramp and off-ramp functionality, plus custody and conversion services targeting institutional customers including market makers, trading platforms, and investment organizations.
World Liberty Trust Company has no intention of becoming a federally insured depository institution. Additionally, the company does not plan to seek access to a Federal Reserve master account.
Complete approval remains pending. The organization must satisfy additional pre-launch requirements before receiving full authorization from the OCC. The regulator retains the authority to withdraw the conditional approval.
On X, World Liberty CEO Zack Witkoff stated the organization aims to “build the most trusted and widely used digital dollar in the world while strengthening the role of the U.S. dollar across the global economy.” Witkoff is the son of Steve Witkoff, Trump’s Middle East special envoy.
Congressional Opposition
The authorization has prompted swift criticism from Democratic legislators. Senator Elizabeth Warren, joined by senators Angela Alsobrooks and Ruben Gallego, revealed plans to present the “Ending Presidential Corruption in Banking Act.” The proposed legislation would prohibit senior government officials from bank ownership or operational control.
In January, Warren had contacted OCC Comptroller Jonathan Gould, requesting suspension of the application review until Trump divested his interests in the company. Gould indicated the agency would maintain its standard review process without political influence.
June financial disclosures revealed Trump received millions of dollars associated with World Liberty Financial.
World Liberty is among numerous crypto entities pursuing federal charters. Coinbase, Paxos, BitGo, Ripple, and Circle have all obtained conditional OCC approvals during the past year. Gould, formerly chief legal officer at Bitfury, has expressed support for providing crypto companies access to federal banking supervision.
Discussions surrounding comprehensive crypto legislation, including the Digital Asset Market Clarity Act, have reached an impasse partly due to ethics provisions concerning Trump’s cryptocurrency business connections.
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