OCC Grants Conditional Charter to Trump-Linked World Liberty

The Office of the Comptroller of the Currency on Aug. 14 granted preliminary conditional approval for World Liberty Trust Company, National Association, to form a national trust bank that would bring issuance, redemption, reserve management and custody of the USD1 stablecoin under federal oversight. The proposed bank would be based in Bay Harbor Islands, Florida, and the charter focuses on fiduciary activities rather than retail banking.

The OCC’s preliminary authorization covers issuance and redemption of USD1, holding reserve assets, custody of digital assets and conversion services that would allow eligible customers to swap approved stablecoins for USD1. World Liberty plans to acquire USD1 reserve assets and related liabilities from Bitgo Bank & Trust if it receives final regulatory approval.

World Liberty Financial emerged in late 2024 and is tied to the Trump and Witkoff families. By mid-August USD1 had a market capitalization of roughly $4.036 billion. An entity affiliated with President Donald Trump and certain family members holds a 38% stake in World Liberty. Zach Witkoff, the company’s chief executive, is the proposed president and chairman of the trust company.

The OCC attached a detailed set of conditions to the preliminary approval. World Liberty Trust must raise at least $20 million in tier 1 capital and keep the greater of $10 million or 50% of that capital in eligible liquid assets. The bank must also show enough liquidity to cover 180 days of operating expenses, build compliance systems, appoint an independent internal audit manager and submit senior officers and directors for OCC review.

Additional requirements include anti-money-laundering controls, information-technology safeguards, adequate insurance coverage and a satisfactory pre-opening examination. The application must include an application for stock in a Federal Reserve Bank as part of the chartering process.

The preliminary approval carries strict timelines. World Liberty must meet the capital requirement within 12 months or the approval will lapse, and the bank must open within 18 months. The OCC retains authority to modify, suspend or rescind the preliminary decision if circumstances change.

The application drew political scrutiny over the Trump family stake and questions about foreign investors. Sen. Elizabeth Warren wrote on X that the plan represented “the most brazen act of self-dealing our financial system has ever seen” and said she will introduce legislation to block similar arrangements. The OCC noted that some investors signed passivity agreements barring them from controlling or influencing bank operations and said career staff were involved in the review and that future supervision will be carried out by nonpolitical examiners.

Zach Witkoff welcomed the preliminary approval and issued a written statement. He said, “What makes a stablecoin trustworthy is the strength of the reserve behind it, and who stands accountable for it,” and added that a national trust bank would place USD1 issuance, custody and reserve management under OCC supervision and examination.

Final authorization requires World Liberty to complete the OCC pre-opening checklist, meet the capital and liquidity tests, transfer USD1 operations from Bitgo and pass regulatory examinations. Only after those steps can the trust bank begin operating and assume direct control over the infrastructure supporting the USD1 stablecoin.