Federal Regulators Condition Approval for Bank Linked to Trump’s Family
Federal financial regulators have provisionally given the green light for a bank to be formed by a company associated with World Liberty Financial, which is partly owned by the family of former President Donald Trump.
On Friday, the Office of the Comptroller of the Currency (OCC) conditionally approved World Liberty Trust Company’s application to operate as a domestic trust bank, as indicated in a letter on the OCC’s website. This trust company is backed by World Liberty Financial, which, interestingly, has 38% of its ownership connected to entities affiliated with Trump and his family.
This bank charter will enable World Liberty to issue stablecoins, a form of cryptocurrency that is secured by stable reserve assets like U.S. Treasuries and can be converted 1:1 into U.S. dollars. Presently, World Liberty uses a third-party service, BitGo, for some of its stablecoin functions. If you think about it, this could potentially yield profits.
However, the charter application is still a work in progress and won’t be finalized until the company completes additional requirements, like arranging financing. Under the Trump administration, the OCC has shown a willingness to support new bank charter applications, many of which have been tied to cryptocurrency projects. By 2025, there were already 40 applications submitted, a striking rise from what we saw during President Joe Biden’s administration. This is based on agency data.
“We’re looking forward to ongoing oversight from federal regulators for many years ahead,” stated Zach Witkoff, CEO of World Liberty Financial, who also chairs an OCC-regulated trust company.
Notably, Witkoff is the son of Stephen Witkoff, who served as Trump’s negotiator in the Middle East.
Some Democrats in Congress have voiced their opposition to the Clarity Act, which is aimed at regulating the cryptocurrency sector, arguing it doesn’t impose adequate restrictions on the president’s capacity to benefit from crypto-related activities. For example, Senator Elizabeth Warren and other Massachusetts Democrats previously urged the OCC not to proceed with World Liberty’s application unless the former president divests from the company.
The OCC has refrained from commenting on this approval.
