The Office of the Comptroller of the Currency has given preliminary conditional approval for World Liberty Trust Company to organize as a national trust bank. The charter would allow the Trump-linked firm to take direct control of issuing and managing its USD1 stablecoin.
The decision advances the company’s plans to bring key stablecoin functions under federal banking supervision.
The Drivers of This Activity
On 14 August the OCC issued a letter granting preliminary conditional approval to World Liberty Trust Company, National Association. The proposed Florida-based entity would issue and redeem the USD1 stablecoin, hold the reserves that back it, and provide digital-asset custody services primarily for institutional clients.
These functions are currently handled by BitGo Bank and Trust. The trust bank charter does not authorize insured deposits or traditional lending. Final approval remains subject to the company meeting capital, operational and other pre-opening requirements set by the regulator.
World Liberty Financial, which is partially owned by an entity affiliated with President Donald Trump and family members, welcomed the step as a milestone that places USD1 under the same supervisory standards applied to other national trust banks.
Impact and Broader Context
The conditional approval is the latest in a series of OCC decisions allowing crypto firms to obtain limited-purpose national trust charters for stablecoin and custody activities. It would consolidate issuance, reserve management and custody of USD1 under direct federal oversight, potentially strengthening institutional confidence in the token.
Critics have raised conflict-of-interest concerns given the family ties and the appointment of the current comptroller. Supporters view it as consistent treatment of digital-asset businesses seeking regulated banking status.
The company must still satisfy remaining conditions before it can open. Market participants will watch the timeline for final approval and any subsequent shift of USD1 operations away from the current custodian.
Source: Reuters; American Banker
OCC conditional approval letter (via official OCC website reporting)