Key Highlights
- World Liberty Trust Company received preliminary conditional approval from the OCC for a federal bank charter last Friday
- The Trump-backed entity intends to assume USD1 stablecoin operations from BitGo Bank and Trust
- With a $4 billion market capitalization, USD1 stands as the fourth-largest stablecoin in circulation
- Senator Elizabeth Warren and Democratic colleagues are preparing the “Ending Presidential Corruption in Banking Act” to prevent senior officials from bank ownership
- Several cryptocurrency companies including Coinbase, Paxos, BitGo, Ripple, and Circle have secured similar conditional OCC approvals
President Donald Trump’s affiliated cryptocurrency venture, World Liberty Financial, has secured preliminary authorization from a federal banking regulator to function as a nationally chartered trust institution.
In a formal letter made public last Friday, the Office of the Comptroller of the Currency provided this initial authorization. The provisional clearance enables World Liberty Trust Company to deliver fiduciary and trust services associated with its USD1 stablecoin product.
Scope of the Banking Authorization
World Liberty Trust Company intends to transition USD1 stablecoin operations away from BitGo Bank and Trust, which presently functions as the sole issuer and custodial provider. The prospective bank additionally aims to provide digital asset custody solutions targeting institutional clientele.
The USD1 stablecoin currently maintains a market capitalization of $4 billion, positioning it as the fourth-most valuable stablecoin following Tether and USD Coin in market rankings.
The organization submitted its charter application in January. According to World Liberty, the banking license would enable the provision of stablecoin minting and redemption services, fiat conversion capabilities, and custodial solutions tailored for institutional participants including market makers, trading platforms, and asset management companies.
World Liberty Trust Company has stated it will not pursue status as a federally insured depository institution. Furthermore, the entity has no intentions of obtaining access to a Federal Reserve master account.
Complete authorization remains pending. The organization must satisfy additional preliminary operating conditions before the OCC grants definitive approval. The regulator maintains authority to withdraw the conditional authorization.
On X, World Liberty CEO Zack Witkoff stated the firm’s ambition 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 offspring of Steve Witkoff, Trump’s special envoy for Middle East affairs.
Legislative Opposition
The banking approval has triggered swift criticism from Democratic members of Congress. Senator Elizabeth Warren, joined by senators Angela Alsobrooks and Ruben Gallego, revealed intentions to propose the “Ending Presidential Corruption in Banking Act.” The proposed legislation would prohibit senior administration officials from possessing or managing banking institutions.
Warren had earlier sent correspondence to OCC Comptroller Jonathan Gould in January, calling for suspension of the application review unless Trump divested his interests. Gould replied that the regulatory body would maintain its standard evaluation process independent of political influences.
Public financial disclosure documents published in June revealed Trump obtained millions in compensation linked to World Liberty Financial operations.
World Liberty Financial represents just one of multiple cryptocurrency enterprises pursuing federal banking charters. Coinbase, Paxos, BitGo, Ripple, and Circle have each obtained conditional authorizations from the OCC during the previous year. Gould, who formerly held the position of chief legal officer at Bitfury, has openly advocated that cryptocurrency companies deserve regulatory pathways to federal banking supervision.
Discussions surrounding comprehensive cryptocurrency regulatory frameworks, including the Digital Asset Market Clarity Act, have encountered delays partially attributed to ethics clauses concerning Trump’s cryptocurrency venture connections.
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