The Office of the Comptroller of the Currency (OCC) on Friday granted preliminary conditional approval for World Liberty Trust Company, a national trust bank tied to World Liberty Financial, to issue and manage the USD1 stablecoin.
The OCC’s decision allows World Liberty Trust Company to take over issuance, redemption, and custody of USD1, currently managed by BitGo. The bank, headquartered in Bay Harbor Islands, Florida, will not accept federally insured deposits or make traditional loans. Final approval remains contingent on meeting conditions, including a $20 million minimum capital requirement and compliance with the GENIUS Act, a 2024 stablecoin law.
Key Details of the Approval
The OCC’s letter outlines the bank’s proposed functions, which include:
- Issuing and redeeming USD1, a dollar-pegged stablecoin with a market value of approximately $4 billion.
- Holding and managing reserve assets backing USD1, such as U.S. Treasurys.
- Providing digital-asset custody for institutional clients, including cryptocurrency exchanges and investment firms.
- Converting approved stablecoins into USD1 for custody clients.
The bank will operate as a national trust company, meaning it will not seek FDIC insurance or a Federal Reserve master account at this time. It also commits to remaining outside the definition of a “bank” under the Bank Holding Company Act.
Leadership and Ownership
Zachary Witkoff, a co-founder of World Liberty Financial, serves as organizer, director, and president of World Liberty Trust Company. The firm states that 38% of World Liberty Financial is owned by an entity affiliated with Donald J. Trump and certain family members.
Regulatory and Political Context
The OCC’s decision follows a wave of similar approvals for crypto firms, including Circle, Ripple, Paxos, Fidelity, and BitGo, under Comptroller Jonathan Gould, whom President Trump appointed in 2024. The regulator emphasized that its review focused on compliance with banking laws, dismissing concerns about potential conflicts of interest involving Trump, his family, or Emirati investors.
Political Reactions
The approval has drawn scrutiny from congressional Democrats, who argue it raises conflict-of-interest concerns. Rep. Gregory Meeks (D-NY) previously questioned Treasury Secretary Scott Bessent about World Liberty Financial during a Capitol Hill hearing. The OCC, however, stated in its letter that the approval was based on a “thorough evaluation” of the application and commitments made by the bank.
Next Steps and Conditions
World Liberty Trust Company must meet several pre-opening requirements before final approval, including:
- Maintaining at least $20 million in capital, with half in liquid assets.
- Adhering to the GENIUS Act and other federal stablecoin regulations.
- Undergoing continuous scrutiny from federal regulators.
The OCC retains the authority to modify, suspend, or rescind the approval if circumstances change. The bank’s planned operations align with federal banking law, which explicitly permits uninsured national banks to issue stablecoins.
Broader Implications for the Crypto Industry
The approval reflects a broader trend of crypto-friendly regulatory shifts under the Trump administration, contrasting with the stricter oversight during the Biden administration. Since 2025, the OCC has received 40 de novo charter applications, approving 21 and denying 2, with the remainder still under review. Industry observers note that these charters enable crypto firms to court institutional clients by offering federally supervised asset management and settlement services.