World Liberty Financial Receives Preliminary Federal Bank Charter Approval Amid Political Controversy

Key Highlights

• World Liberty Trust Company received preliminary conditional approval from the OCC for a federal bank charter on Friday
• The company intends to assume USD1 stablecoin issuance responsibilities from BitGo Bank and Trust
• With a $4 billion market capitalization, USD1 currently stands as the fourth-largest stablecoin globally
• Senator Elizabeth Warren and Democratic colleagues plan to introduce the “Ending Presidential Corruption in Banking Act” to prevent senior officials from bank ownership
• Multiple crypto companies including Coinbase, Paxos, BitGo, Ripple, and Circle have obtained similar conditional OCC approvals

President Donald Trump’s crypto enterprise, World Liberty Financial, has secured preliminary authorization from federal banking regulators to function as a nationally chartered trust institution.

The Office of the Comptroller of the Currency delivered this preliminary authorization through an official letter made public on Friday. This green light enables World Liberty Trust Company to provide fiduciary services and trust company operations connected to its USD1 stablecoin product.

Scope of Regulatory Authorization

World Liberty Trust Company intends to transition USD1 stablecoin issuance responsibilities from BitGo Bank and Trust, which presently functions as the sole issuer and custodian. The proposed bank additionally aims to deliver digital asset custody solutions to institutional clientele.

The USD1 stablecoin presently maintains a $4 billion market capitalization. This positions it as the fourth-largest stablecoin by market value, trailing Tether and USD Coin.

The organization submitted its charter application in January. World Liberty indicated the banking license would enable the provision of stablecoin issuance and redemption capabilities, fiat on-ramp and off-ramp functionality, plus custody and conversion services targeting institutional clients including market makers, trading platforms, and investment organizations.

World Liberty Trust Company has no intentions of becoming a federally insured depository institution. The company also does not seek access to a Federal Reserve master account.

Complete authorization remains pending. The organization must fulfill additional pre-operational requirements before the OCC grants final approval. The regulatory agency retains authority to withdraw the conditional approval.

World Liberty CEO Zack Witkoff stated on X that the organization aims 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 Middle East special envoy.

Legislative Opposition Emerges

The regulatory approval has triggered swift opposition from Democratic legislators. Senator Elizabeth Warren, joined by Senators Angela Alsobrooks and Ruben Gallego, revealed intentions to propose the “Ending Presidential Corruption in Banking Act.” The proposed legislation would prohibit senior government officials from owning or controlling banking institutions.

Warren had earlier sent correspondence to OCC Comptroller Jonathan Gould in January, requesting suspension of the application review until Trump divested his stake in the venture. Gould replied that the regulatory agency would maintain its standard review process independent of political factors.

Financial disclosure documents published in June revealed Trump received millions of dollars tied to World Liberty Financial.

World Liberty is among numerous crypto enterprises pursuing federal charters. Coinbase, Paxos, BitGo, Ripple, and Circle have each obtained conditional OCC approvals during the previous year. Gould, who formerly held the position of chief legal officer at Bitfury, has openly advocated that cryptocurrency companies should have access to federal banking supervision.

Discussions surrounding comprehensive crypto legislation, including the Digital Asset Market Clarity Act, continue to face delays partially due to ethics provisions concerning Trump’s cryptocurrency business connections.

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