The Office of the Comptroller of the Currency (OCC) has granted preliminary conditional approval for a national trust bank tied to World Liberty Financial, a crypto venture partially owned by President Donald Trump's family [1]. The OCC's decision, announced in a letter posted on its website, advances World Liberty Financial's plans to establish World Liberty Trust Company, National Association, which will be based in Bay Harbor Islands, Florida [1]. The bank aims to issue and redeem the USD1 stablecoin, maintain reserves backing the stablecoin, and provide digital asset custody and related services to institutional customers [1].
World Liberty Financial submitted its application for a national trust bank charter in January, and the OCC's letter addressed several objections raised by commenters, including concerns about potential Trump family conflicts, foreign investment, stablecoin regulation, FDIC insurance, and regulatory favoritism [1]. The OCC rejected these objections as grounds for denying the charter, stating that career OCC staff reviewed the application for consistency with statutory, regulatory, and policy requirements [1].
World Liberty Financial is 38% owned by an entity affiliated with Donald J. Trump and certain of his family members, according to the company's website [1]. Zach Witkoff, President and Chairman of World Liberty Trust and son of Trump's special envoy Steve Witkoff, described the OCC's decision as a "milestone" and emphasized the company'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" [1].
Despite the preliminary approval, the bank cannot begin operating yet and must satisfy a series of requirements before opening and receiving final approval from the OCC [1]. An OCC official highlighted the importance of new banks, stating that a robust pipeline of new entrants is crucial to a healthy financial system, as they bring new ideas, products, and services [1].
CONCLUSION
The OCC's preliminary approval marks a significant step forward for World Liberty Financial's national trust bank and its USD1 stablecoin initiative. However, the venture must still meet additional regulatory requirements before commencing operations. The involvement of the Trump family and the OCC's handling of related objections underscore the high-profile nature and potential market impact of this development.