World Liberty Secures Bank Charter for Trump-Backed USD1 Stablecoin

Regulatory Approval and Stablecoin Operations

World Liberty Financial, the cryptocurrency venture backed by President Donald Trump and his family, has achieved a major regulatory milestone. The Office of the Comptroller of the Currency granted preliminary conditional approval for World Liberty Trust Company, a national trust bank charter that will oversee the issuance and redemption of USD1, the firm’s dollar-pegged stablecoin.

According to the OCC’s decision letter, the Florida-based trust company will take over stablecoin issuance duties from BitGo, which currently serves as the exclusive issuer and custodian. Beyond stablecoin management, the institution will offer digital asset custody services to clients and facilitate conversion between approved stablecoins and USD1. The trust bank structure imposes certain regulatory constraints: the entity will not accept customer deposits, will not carry Federal Deposit Insurance Corporation coverage, and will not immediately pursue a Federal Reserve master account. World Liberty has committed to operating outside the “bank” classification under the Bank Holding Company Act.

Zachary Witkoff, a World Liberty co-founder, holds the roles of organizer, director, and president. The approval mandates a $20 million minimum capital reserve and compliance with the GENIUS Act, Congress’s stablecoin regulatory framework enacted last year. The institution has 18 months to commence operations.

Growing Ecosystem of Bank-Chartered Crypto Firms

World Liberty joins an expanding group of digital asset companies receiving national trust charters from federal regulators. Circle, Ripple, Paxos, Fidelity, and BitGo have all secured comparable approvals, demonstrating the OCC’s embrace of integrating cryptocurrency infrastructure into traditional banking channels. The GENIUS Act has catalyzed this regulatory trend, incentivizing crypto platforms to pursue formal bank charters as a route to institutional legitimacy.

Regulatory Concerns and Political Opposition

The approval has drawn controversy. During the review, the OCC received comments highlighting potential conflicts of interest involving Trump, the Witkoff family, and Emirati investors in World Liberty, along with Emoluments Clause questions. The regulator determined these concerns fell outside its regulatory mandate and did not factor them into its decision. Eric Trump signed passivity commitments for one investment entity tied to World Liberty.

Senator Elizabeth Warren has publicly challenged the OCC’s approach to crypto bank charters, contending that such approvals enable cryptocurrency firms to function as banks while bypassing traditional financial safeguards. Her objections reflect broader skepticism among some lawmakers regarding whether these charters represent genuine innovation or regulatory circumvention.

World Liberty’s charter demonstrates that federal banking regulators view stablecoins as viable financial infrastructure, bolstering the legitimacy of blockchain-based assets alongside established crypto firms like Ripple in the regulated banking ecosystem.

Source: OCC, via Decrypt. Not financial advice.