The U.S. Office of the Comptroller of the Currency (OCC) has conditionally approved the establishment of World Liberty Trust Company as a national trust bank. The proposed institution, based in Florida and affiliated with World Liberty Financial, which is supported by the Trump family, will facilitate adjustments to the issuance framework for the USD1 stablecoin upon approval.
Intend to take over the USD1 issuance
According to the OCC’s determination letter, this institution plans to assume responsibility for the issuance and redemption of USD1, replacing BitGo, which currently serves as the exclusive issuer and custodian. In addition to its stablecoin operations, it also intends to provide digital asset custody services in a fiduciary capacity and allow custodied clients to convert approved stablecoins into USD1.
The documents indicate that this is a national trust bank, not a traditional commercial bank. As per the application, the institution will not accept deposits, will not be insured by the Federal Deposit Insurance Corporation (FDIC), and will not at this time apply for a Federal Reserve master account.
Approval is subject to multiple conditions.
This approval is not a final, unconditional green light. The OCC requires the institution to meet several preconditions, including at least $20 million in capital and compliance with the stablecoin legal requirements under the GENIUS Act, which took effect last year.
- The minimum capital requirement is $20 million.
- Institution type: National Trust Bank
- Must open within 18 months after approval.
The document also states that the relevant institutions have committed to not falling within the definition of "bank" under the Bank Holding Company Act. This means their operations will focus on trust, custody, and stablecoin-related services, rather than traditional deposit and lending activities.
Trump association raises questions
During the review period, regulators received multiple comments raising concerns about potential conflicts of interest involving the project and Trump, his family, the Witkoff family, and UAE investors, as well as references to the U.S. Constitution's Emoluments Clause.
However, the OCC largely did not adopt such views. Regulators stated that World Liberty Financial itself is not the direct applicant in this case, so related political and conflict-of-interest issues are not within the core scope of this review.
Public documents show that project co-founder Zachary Witkoff is listed as the organizer, director, and president, while a passive ownership commitment document was signed by Eric Trump on behalf of an investment entity. U.S. Senator Elizabeth Warren criticized the OCC for issuing such licenses to crypto companies, stating that these institutions perform some banking functions but are not subject to corresponding regulatory constraints.