Trump-backed World Liberty wins conditional OCC trust bank charter
The US banking regulator has approved a conditional trust charter for the president's crypto venture, clearing it to issue a fiat-backed stablecoin while sparking new legislative efforts to restrict political banking ties.
The Office of the Comptroller of the Currency granted World Liberty Trust Company a conditional national trust bank charter on Friday. The preliminary approval clears the regulatory hurdle for the entity to issue and custody World Liberty Financial’s USD1 stablecoin.
Under the charter, the trust will take over the exclusive issuance of the fiat-backed stablecoin from BitGo Bank & Trust. It plans to distribute USD1 to institutional clients nationwide and provide digital asset custody services in a fiduciary capacity.
Final authorization remains pending until the company satisfies additional preopening requirements. The OCC noted that the entity will not operate as a federally insured depository institution, nor will it seek a Federal Reserve master account or fall under the Bank Holding Company Act.
Regulators defended the decision against political pressure, stating the approval followed a rigorous review process. The OCC letter specified that career staff reviewed the application for regulatory consistency based on commitments made by the bank’s representatives.
The application has faced intense scrutiny since its January submission due to partial ownership by President Donald Trump. Senator Elizabeth Warren previously challenged Comptroller Jonathan Gould, arguing that such crypto institutions seek to evade fundamental banking safeguards.
Regulatory attention on the enterprise heightened after an Abu Dhabi investment firm purchased a stake in the broader World Liberty Financial operation early last year. Despite Democratic requests to halt the process, Gould maintained that the agency would proceed on its normal timeline without political interference.
The conditional approval immediately triggered new legislative countermeasures from Democratic lawmakers. Warren, alongside Senators Angela Alsobrooks and Ruben Gallego, announced the Ending Presidential Corruption in Banking Act to prohibit senior government officials from controlling banks.
This political clash threatens to complicate broader digital asset legislation. Alsobrooks and Gallego are also leading negotiations on the Digital Asset Market Clarity Act, which remains stalled partly because Democrats are demanding the president divest from his crypto business interests.
