Trump-Backed Crypto Firm Gets Conditional Bank Charter

The Office of the Comptroller of the Currency has granted preliminary conditional approval for a national trust bank charter to World Liberty Trust Co., a company tied to World Liberty Financial, a crypto firm partially owned by President Donald Trump's family.

The charter will allow the company to issue and redeem its USD1 stablecoin, a fiat currency-backed stablecoin, to institutional clients on a nationwide basis. World Liberty Trust Co. must meet additional requirements, including a $20 million minimum capital requirement, before receiving final approval.

World Liberty Financial is 38% owned by an entity affiliated with Donald J. Trump and certain of his family members. The OCC received comments flagging potential conflicts of interest involving the president, his family, and the Witkoffs, but largely dismissed those concerns as outside the scope of its review.

Zachary Witkoff, a World Liberty co-founder, is listed as organizer, director, and president of World Liberty Trust Co. The company has 18 months to open after receiving conditional approval and does not intend to become a federally insured depository institution or seek a Federal Reserve master account.

## What it means The approval is significant as it gives new powers and federal credibility to a venture in which Trump and his family retain a substantial financial interest. The decision has been met with criticism from Democrats, including Sen. Elizabeth Warren, who has called the OCC's crypto charter approvals illegal, arguing that the firms function as banks while sidestepping the safeguards that status requires.

The OCC has already cleared national trust charters for several digital-asset companies, including Circle, Ripple, Paxos, Fidelity, and BitGo. World Liberty Trust Co. President and Chairman Zach Witkoff said the charter will allow the company to manage its USD1 stablecoin under the OCC’s watch, adding that institutions trust how it operates and confidence at enterprise scale deserves the backing of federal supervision.

## Why it matters The approval of World Liberty Trust Co.'s national trust bank charter has implications for the broader crypto industry. It highlights the growing trend of crypto companies seeking federal charters to operate under the watch of federal regulators. The decision also raises questions about the potential conflicts of interest involving the president and his family, as well as the regulatory framework for crypto companies.

The OCC's decision to grant conditional approval to World Liberty Trust Co. is a significant development in the crypto space, and its implications will be closely watched by industry players, regulators, and lawmakers. As the crypto industry continues to evolve, the approval of national trust bank charters for crypto companies is likely to be a key area of focus for regulators and lawmakers.