Preliminary Approval for World Liberty Financial’s National Trust Bank
The Office of the Comptroller of the Currency (OCC) has issued preliminary approval for World Liberty Financial, a cryptocurrency venture co-founded by former President Trump and his sons, to set up a national trust bank that would issue and manage a stablecoin pegged to the dollar.
If everything goes smoothly and final approval is granted, the World Liberty Trust Company will be able to issue and redeem the stablecoin at a value of $1, manage the underlying assets, and safeguard the digital assets of its institutional clients. However, it won’t be able to accept federally insured deposits or offer traditional bank loans.
The OCC noted that if the proposal fits certain regulatory and policy standards, they’ll provisionally approve the charter application. However, they also stressed that this approval isn’t definitive. World Liberty has to meet various conditions prior to starting operations, such as maintaining a minimum capital of $20 million and ensuring that at least half of it remains in liquid assets. The OCC retains the right to adjust, pause, or withdraw approval should circumstances change.
The trust bank will be based in Bay Harbor Islands, Florida.
Launched by World Liberty Financial in March 2025, the stablecoin, USD1, has quickly ascended to become the fourth largest stablecoin, boasting a market valuation of about $4 billion. Essentially, a stablecoin is a digital asset that aims to keep the value of a dollar, generally secured by cash reserves, Treasury bills, or similar easily accessible assets.
Currently, USD1 is issued by BitGo Bank & Trust, which oversees the assets that back USD1. With Friday’s approval, World Liberty Trust is set to take over those operations, bringing the issuance and reserves of USD1 under the direct oversight of federal banking regulators.
World Liberty has indicated that the trust bank will cater to various clients, including cryptocurrency exchanges and investment firms.
The OCC stated that this activity aligns with federal banking laws, noting that when Congress passed the GENIUS Act, it clearly permitted uninsured national banks to issue stablecoins.
This announcement follows pushback from figures like Senator Elizabeth Warren from Massachusetts, who has voiced concerns regarding potential conflicts of interest tied to Trump’s international business dealings during his administration. During a February hearing, Warren implored the Comptroller of the Currency, Jonathan Gould, to reject the application, suggesting approval would implicate him in corruption. She requested access to the company’s unedited filings and raised questions about the disclosure of investors linked to the United Arab Emirates.
In response, Gould refrained from discussing sensitive aspects of the application but asserted that the OCC adheres to established protocols.
“It’s worth noting that the only political pressure I’ve experienced from any U.S. government entity has been from you, Senator,” Gould remarked to Warren.
Moving forward, the OCC announced that application reviews will be conducted by career employees, with bank oversight managed by seasoned examiners.
The agency added that the auditor and staff consistently met their legal and ethical obligations regarding the application.
The OCC also dismissed claims that World Liberty Financial’s foreign investments should be blocked or postponed. They clarified that World Liberty Financial itself had not requested the bank’s establishment, and none of the foreign investors mentioned by critics would possess ownership or control over the bank.
The new bank won’t issue or hold a separate cryptocurrency token for World Liberty Financial. The three investors, including Eric Trump’s business, have consented not to pursue executive or board positions or attempt to influence the bank’s policies.
Zach Witkoff, the CEO of World Liberty Financial and the son of former President Trump’s special envoy, Steve Witkoff, will hold the roles of president and director at the trust bank. The proposed board will also feature Robert Witkoff, Scott Alper, along with two independent directors.
The OCC granted preliminary approval to the National Trust Bank, which multiple other digital asset companies, such as Ripple, BitGo, Fidelity Digital Assets, Paxos, and Crypto.com parent, Foris DAX, have also proposed.
On Friday, the OCC shared via social media that it has returned to its core mission of welcoming new participants while ensuring the safety and soundness of the financial system. The U.S. government has indicated that it is “resuming operations.”
Interestingly, the OCC did not authorize new bank charters in 2024, during Biden’s last presidential year. In 2025, seven were approved, and 15 have been authorized so far this year.
