TL;DR
- World Liberty Trust Company received preliminary conditional OCC approval to operate as a national trust bank but cannot begin operations until final requirements are met.
- The proposed bank would handle USD1 issuance, reserve assets and institutional custody while excluding WLFI from its activities.
- World Liberty Trust must meet capital, governance and examination requirements before the national trust bank can open.
On August 14, the US Office of the Comptroller of the Currency granted preliminary conditional approval to World Liberty Trust Company, National Association (WLTC). The decision moves World Liberty Trust closer to operating as a national trust bank focused on its USD1 stablecoin.
But before the bank can open, World Liberty Trust must meet the OCC’s pre-opening requirements and pass an examination. If it receives final approval, USD1 operations would move under one federally supervised entity.
What the proposed trust bank would do
World Liberty Trust plans to issue and redeem USD1 for institutional clients nationwide. It would also maintain the assets backing the stablecoin and provide custody for USD1 customers and other institutions. The bank could also convert stablecoins already held in custody there into USD1 for institutional clients.
BitGo has served as USD1’s exclusive issuer and custodian since the stablecoin’s March 2025 launch. Although the proposed bank intends to assume those roles, no timetable has been provided for the transfer.
Trust banks are generally distinct from conventional commercial banks. They cannot take ordinary deposits or make loans. World Liberty Trust’s permitted business would stay limited to trust activities and related services described in its approved plan.
What conditions come with the approval
The OCC attached operational and financial conditions to its decision. World Liberty Trust must maintain at least $20 million in capital and appoint a qualified internal audit manager. Before requesting a pre-opening examination, it must also apply for stock in a Federal Reserve Bank and establish the required policies, controls and governance systems.
Also, there’s a deadline attached to all of this. Organizers have 12 months to raise the required capital, while the bank must open within 18 months. The preliminary approval expires if they miss those deadlines, except in limited circumstances accepted by the OCC.
Even after opening, the bank stays exposed to rule changes. It must adjust, stop or divest activities if the GENIUS Act or its implementing regulations demand it. Significant changes to products, services or risk limits would require advance notice and a written non-objection from the OCC.
Where WLFI fits in
The proposed bank would focus on USD1, a dollar-backed stablecoin with more than $4 billion in circulation, according to World Liberty. The OCC decision says the bank will not issue, custody or trade WLFI, the governance token associated with World Liberty Financial.
The charter review also drew questions about ownership and political conflicts. The OCC received seven comments from four commenters. Some raised concerns about President Donald Trump’s family connections to the venture and investments linked to the United Arab Emirates.
The regulator said World Liberty Financial and its outside investors are not parties to the bank application. It obtained passivity commitments from several indirect investors, restricting them from controlling or influencing the proposed bank.
Democratic lawmakers have continued to question whether a Trump-appointed regulator should approve a charter connected to the president’s family. The OCC said career staff reviewed the application under established procedures, while nonpolitical examiners would supervise the bank.
In response, Senator Elizabeth Warren and a group of Senate Democrats, including Angela Alsobrooks and Ruben Gallego, said they would introduce the Ending Presidential Corruption in Banking Act, which would bar senior government officials from owning or controlling a bank.
>>> Read more: OCC Review: Coinbase Trust Charter Under Fire
What comes next
World Liberty called the decision a milestone in a multi-step process. Its proposed five-member board includes co-founder Zach Witkoff as chair. One other director, Robert Witkoff, shares family ties with the chair, while a second, Scott Alper, is a senior executive at the Witkoff Group’s real estate business. Two directors are independent.
World Liberty Financial is 38% owned by an entity affiliated with President Trump and his family, though day-to-day leadership of the proposed bank sits with the Witkoffs, longtime Trump family associates and business partners.
World Liberty is one of at least ten stablecoin and digital-asset firms to win conditional OCC approval since December 2025, including Circle, Ripple, Paxos, Coinbase, Crypto.com, and Sony Bank. Morgan Stanley and Zerohash have applications still pending. Every approved charter, including World Liberty’s, carries the same condition: the OCC can modify, suspend, or rescind it at any point before the bank opens.
