- The OCC gave World Liberty Trust Co. conditional approval for a national trust bank charter.
- The company plans to handle USD1 issuance and digital asset custody for institutional clients.
- Final approval still depends on additional OCC preopening requirements.
World Liberty moved a step closer to becoming a federally chartered trust bank after the Office of the Comptroller of the Currency granted conditional approval to World Liberty Trust Co. The regulator said the company may conduct fiduciary and other trust company activities as a national trust bank, though final approval still depends on added preopening requirements. According to the OCC letter, World Liberty plans to focus on services tied to World Liberty Financial’s USD1 stablecoin, including issuance and custody for institutional customers. The decision arrives after months of public scrutiny and criticism from Democratic lawmakers over the firm’s Trump ties and broader concerns about crypto companies gaining banking access.
World Liberty receives conditional OCC approval
The Office of the Comptroller of the Currency said in a public letter that World Liberty Trust Co. received preliminary conditional approval for a federal charter. The agency said its decision followed a review of the information available to it, including the commitments and representations made in the application and by the company’s representatives. Under that approval, World Liberty could carry out fiduciary and related trust company activities as a national trust bank.
The OCC also stressed that the decision is not the final step. World Liberty must still meet additional preopening requirements before the charter can receive full approval. In other words, the company has cleared an important regulatory stage, but it cannot yet operate under a final charter until the agency confirms those remaining conditions have been satisfied.
World Liberty plans for USD1 services
According to the OCC letter, World Liberty Trust Company intends to focus on services linked to World Liberty Financial’s USD1 stablecoin. The bank plans to issue USD1 to institutional clients across the United States. The regulator said this role would be assumed from BitGo Bank & Trust, National Association, which is currently the exclusive issuer and custodian for USD1.
The letter also said World Liberty plans to provide digital asset custody as a fiduciary, primarily for USD1 customers and other institutional clients. At the same time, the OCC noted that the company does not intend to become a federally insured depository institution. It also does not plan to be treated as a bank under the Bank Holding Company Act or seek access to a Federal Reserve master account.
Lawmakers question the World Liberty application
World Liberty applied for the charter in January, and the filing quickly drew political attention. Democratic lawmakers objected because broader World Liberty entities are partly owned by President Donald Trump, who appointed regulators overseeing agencies such as the OCC. That raised concerns among critics about whether crypto-related bank charter decisions could be influenced by political ties.
In May, Senator Elizabeth Warren challenged Comptroller of the Currency Jonathan Gould and accused him of approving unqualified crypto banks for trust charters. She argued that some firms were seeking ways to issue U.S. stablecoins and gain access to the banking system without the same obligations faced by traditional banks. Gould had previously told Warren that the OCC would follow its normal process and would not consider politics in reviewing the World Liberty application.
Political fallout after the approval
The OCC letter said concerns raised in public comments were reviewed by career staff for consistency with legal and regulatory standards. It also came after separate scrutiny involving World Liberty and USD1, including attention on a prior stake purchase in World Liberty Financial by an Abu Dhabi investment firm. Those issues helped keep the application in the political spotlight even before the regulator announced its decision.
After the conditional approval became public, Warren and other Democrats said they would introduce the Ending Presidential Corruption in Banking Act. If enacted, the measure would bar senior government officials from owning or controlling a bank. Senators Angela Alsobrooks and Ruben Gallego joined that effort, and the report said both are also involved in work on the Digital Asset Market Clarity Act, where ethics provisions remain part of stalled negotiations.
Conclusion
World Liberty now has conditional approval from the OCC to move toward operating as a national trust bank, but the charter is not yet final. The agency said World Liberty can pursue trust and fiduciary activities tied mainly to USD1, including stablecoin issuance for institutional clients and digital asset custody services. The approval also clarifies that the company does not plan to become an insured depository institution or seek a Federal Reserve master account. Even so, the World Liberty decision is likely to remain politically sensitive, as Democratic lawmakers continue to question the ethics and regulatory implications of a Trump-linked crypto business obtaining federal banking approval.
Disclaimer
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