World Liberty Trust wins conditional OCC approval as USD1 tops $4 billion

The Office of the Comptroller of the Currency granted preliminary conditional approval to World Liberty Trust Company, a national trust bank that would issue and manage the USD1 stablecoin, now above $4 billion in circulation. The decision, posted on the OCC's website Friday, advances the Trump family-affiliated crypto venture's plan to bring its fastest-growing product under federal banking supervision.

"A national trust bank brings USD1 issuance, custody and reserve management together under OCC supervision, examined on the same standards that have governed banks for generations," Zach Witkoff, president and chairman of World Liberty Trust, said. "We welcome continuous scrutiny from federal regulators for many years to come."

The proposed bank, based in Bay Harbor Islands, Florida, would handle issuance and redemption of USD1, manage the dollar reserves backing the stablecoin and provide digital asset custody to institutional customers. Those functions are currently handled through BitGo. The OCC approval is preliminary — World Liberty Trust must maintain at least $20 million in capital, appoint a qualified internal audit head and notify the regulator of material changes to its business plan before opening.

USD1, a dollar-pegged token backed by US dollars held at financial institutions, US government money market funds and cash equivalents, ranks fourth among stablecoins by market capitalization. It is available on Binance, Coinbase, Kraken, Bybit, OKX and Crypto.com, as well as decentralized exchanges Uniswap and PancakeSwap.

Ownership scrutiny and the Witkoff connection

The OCC's conditional approval letter addressed objections raised by commenters over potential Trump family conflicts, foreign investment and regulatory favoritism. World Liberty Financial states it is 38 percent owned by "an entity affiliated with Donald J. Trump and certain of his family members."

Several investors, including foreign ones, signed commitments not to seek control over the bank or influence its operational decisions. Eric Trump, acting as president of an investment entity affiliated with the Trump family, was among the signatories. In February, two Democratic members of the Senate Banking Committee asked the Treasury Secretary to assess national security risks tied to a reported $500 million purchase of a stake in World Liberty Financial linked to the UAE's national security adviser.

The OCC rejected those objections as grounds for denying the charter, saying career staff reviewed the application under established procedures. "Career OCC staff reviewed the application for consistency with the statutory, regulatory, and policy requirements and factors for approval of a de novo application," the agency wrote.

World Liberty Trust's leadership is closely tied to the Witkoff family, longtime allies of Trump. Zach Witkoff is the son of Trump's special diplomatic envoy, Steve Witkoff. Robert Witkoff, Steve Witkoff's brother, is set to join the bank's board, along with Scott Alper, president of the Witkoff family's real estate business. Mack McCain will serve as chief trust officer, while Daniel Dietzel, previously CFO of institutional prime broker Hidden Road, will serve as CFO.

The national trust charter does not permit deposit-taking or lending like a traditional commercial bank. Instead, it gives crypto companies a single federal framework for custody, asset servicing and settlement across the United States. Under Comptroller Jonathan Gould, whom Trump appointed last year, Ripple and Circle have received preliminary approval for similar charters.

Estimates suggest the Trump family had earned approximately $50 million in revenue from USD1 by the end of June 2026, with World Liberty Financial directing more than $1.6 billion to the president and his family as of April. The OCC approval could strengthen World Liberty Financial's position in the stablecoin market if the company meets all regulatory requirements for the full launch of its trust bank.

This article is for informational purposes only and does not constitute investment advice.