OCC Grants Preliminary Approval to National Trust Bank with Ties to Trump Family

The Office of the Comptroller of the Currency (OCC) announced on Friday that it has given preliminary conditional approval to National Trust Bank, which is partnering with World Liberty Financial, a cryptocurrency initiative partly owned by the family of former President Donald Trump.

This decision, detailed in a letter on the OCC’s website, supports World Liberty Financial’s ambitions to establish a national trust bank dedicated to the issuance and management of a stablecoin, specifically the USD1 stablecoin.

Based in Bay Harbor Islands, Florida, World Liberty Trust Company, National Association, aims to issue and redeem USD1, maintain reserves for the stablecoins, and offer digital asset custody along with related services for institutional customers.

The OCC’s letter confirmed it had granted this approval for World Liberty Trust Company’s application, which was submitted back in January.

On another note, Donald Trump has raised concerns that new taxes proposed by Governor Hochul and Mamdani Pieter may lead to significant wealth exit from New York City.

The company expressed satisfaction with the OCC’s decision, calling it a significant milestone in their bank’s development.

Zach Witkoff, president and chairman of World Liberty Trust, emphasized that this national trust bank would ensure thorough oversight by the OCC, which applies long-standing banking standards. He added, “We welcome continued oversight by federal regulators in the years to come.”

Notably, Witkoff is the son of Steve Witkoff, who served as Trump’s special envoy.

In an interview, Zach Witkoff mentioned that the primary goal of the proposed National Trust Bank is straightforward.

Meanwhile, Bank of America has unveiled a massive $250 billion initiative aimed at modernizing U.S. infrastructure.

Witkoff highlighted their ambition to create the most reliable and widely used digital dollar, which would also fortify the U.S. dollar’s role on the global stage.

However, the OCC noted that the bank cannot operate until it fulfills a series of conditions to receive final approval.

A substantial section of the OCC’s communication addressed concerns raised by external commentators regarding potential conflicts of interest due to the Trump’s family’s involvement, foreign investments, stablecoin regulations, and issues surrounding FDIC insurance.

It’s worth noting that Minnesota recently implemented a ban on virtual currency ATMs following reports that residents lost nearly $1 million to fraud.

World Liberty Financial states on its website that 38% of its shares are owned by “affiliates of Donald J. Trump and certain members of his family.” Despite concerns, the OCC dismissed these objections when reviewing the bank’s charter application.

“Career OCC staff assessed the application against established statutory, regulatory, and policy criteria,” the OCC remarked.

OCC officials underlined the critical role of de novo banks in fostering a robust financial ecosystem, promoting competition, stimulating innovation, and enhancing consumer choices.

Overall, I think this development could have significant implications in both the banking sector and the cryptocurrency landscape, though it’s still early to predict the exact outcome.