Key Highlights
- World Liberty Trust Company received preliminary federal bank charter approval from the OCC on Friday
- The company intends to assume control of USD1 stablecoin operations from BitGo Bank and Trust
- With a $4 billion market capitalization, USD1 stands as the fourth-largest stablecoin globally
- Senator Elizabeth Warren and Democratic colleagues are preparing the “Ending Presidential Corruption in Banking Act” to prevent senior officials from bank ownership
- Multiple cryptocurrency companies including Coinbase, Paxos, BitGo, Ripple, and Circle have similarly obtained conditional OCC approvals
President Donald Trump’s affiliated cryptocurrency enterprise, World Liberty Financial, has secured preliminary authorization from federal banking regulators to function as a nationally chartered trust institution.
In a letter made public on Friday, the Office of the Comptroller of the Currency provided conditional clearance for the venture. This authorization enables World Liberty Trust Company to provide fiduciary and trust services centered around its USD1 digital currency.
Scope of Regulatory Clearance
World Liberty Trust Company aims to assume responsibility for USD1 stablecoin distribution from its current operator, BitGo Bank and Trust, which presently functions as the sole issuer and custodial entity. The proposed bank additionally seeks to deliver digital asset storage solutions to corporate and institutional clients.
USD1 maintains a market capitalization of approximately $4 billion, positioning it as the fourth-most valuable stablecoin in the market, trailing only Tether and USD Coin.
The charter application was submitted in January this year. According to World Liberty, obtaining the license would enable the company to provide stablecoin creation and redemption capabilities, fiat currency conversion services, as well as custody and exchange functions for institutional participants including market makers, trading platforms, and investment entities.
World Liberty Trust Company has indicated it will not pursue federal deposit insurance status nor seek access to a Federal Reserve master account for its operations.
Complete authorization remains pending. The organization must satisfy various pre-launch conditions before receiving final OCC endorsement. Notably, the regulator retains authority to withdraw the conditional approval.
In a statement on X, World Liberty CEO Zack Witkoff expressed the company’s ambition to “build the most trusted and widely used digital dollar in the world while strengthening the role of the U.S. dollar across the global economy.” Witkoff is the son of Steve Witkoff, Trump’s special envoy to the Middle East.
Legislative Opposition
The regulatory approval has immediately sparked controversy among Democratic legislators. Senator Elizabeth Warren, joined by colleagues Angela Alsobrooks and Ruben Gallego, revealed intentions to propose the “Ending Presidential Corruption in Banking Act,” legislation designed to prohibit high-ranking government officials from possessing or managing banking institutions.
In January, Warren had previously contacted OCC Comptroller Jonathan Gould, requesting suspension of the application review until Trump separated himself from the venture. Gould replied that the agency would maintain its standard evaluation process without consideration of political factors.
According to financial disclosure documents published in June, Trump has received substantial compensation linked to World Liberty Financial operations.
World Liberty Financial is among numerous cryptocurrency enterprises pursuing federal banking credentials. Coinbase, Paxos, BitGo, Ripple, and Circle have all secured conditional approvals from the OCC during the previous twelve months. Gould, who formerly held the position of chief legal officer at Bitfury, has openly advocated for creating regulatory pathways allowing cryptocurrency companies to obtain federal banking supervision.
Congressional discussions regarding comprehensive cryptocurrency regulation, including the Digital Asset Market Clarity Act, have encountered obstacles partly due to ethics provisions concerning Trump’s involvement in the cryptocurrency sector.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
