The Office of the Comptroller of the Currency on Friday granted preliminary conditional approval for World Liberty Trust Company, National Association, to organize as a national trust bank. The decision advances plans by the Trump-linked World Liberty Financial to bring issuance, reserve management and institutional custody of its USD1 stablecoin under direct federal supervision.

World Liberty Trust Company would operate as a wholly owned subsidiary of Delaware-registered WLTC Holdings LLC, with its main office in Bay Harbor Islands, Florida. The proposed bank applied for the charter in January. Preliminary approval permits organization of the institution but does not authorize it to open for business. Final authorization requires completion of pre-opening requirements set by the regulator.

Scope of Planned Operations

Once authorized, the trust bank intends to issue and redeem USD1 for institutional clients nationwide, maintain the assets backing the token, and provide fiduciary digital asset custody services. It also plans conversion services limited to assets held in its custody. USD1 currently exceeds $4 billion in circulation and ranks among the largest dollar-pegged stablecoins. Reserves consist of U.S. dollars held at financial institutions, U.S. government money market funds and cash equivalents.

BitGo Bank & Trust presently serves as exclusive issuer and custodian. After opening, World Liberty Trust Company plans to acquire the reserve assets and assume related liabilities. The regulator noted that any such transfer may require additional approval under federal bank merger rules.

National trust banks of this type focus on custody, fiduciary, settlement and asset-servicing functions. They do not accept ordinary customer deposits or make conventional loans. A federal charter would allow nationwide operations under a single primary regulator and subject the institution to regular examinations along with federal anti-money laundering and sanctions requirements.

Capital, Compliance and Timeline Conditions

The approval carries multiple conditions. The bank must hold at least $20 million in eligible capital at opening, with a portion kept in liquid assets, and maintain sufficient liquidity to cover 180 days of operating expenses. Organizers must submit an updated operating plan and receive non-objection. A qualified internal audit manager is required, and the proposed chief financial officer needs regulatory approval before the opening date.

The institution must also apply for stock in a Federal Reserve Bank. It must notify the OCC of major business-plan changes in advance. The preliminary approval can be modified, suspended or withdrawn if new concerns arise. Capital must be raised within 12 months and the bank opened within 18 months, or the approval lapses.

Proposed leadership includes Zach Witkoff as president and chairman. The five-member board would feature Scott Alper, Robert Witkoff and independent directors Jeffrey Weiner and Erin Baskett. Mack McCain is designated chief trust officer and Daniel Dietzel as chief financial officer.

Political Scrutiny and Regulatory Response

The application has drawn attention because of ties to President Donald Trump and members of the Witkoff family, who helped launch World Liberty Financial. An entity affiliated with Trump and certain family members holds a substantial stake. Democratic lawmakers, including Sen. Elizabeth Warren, previously urged the OCC to pause the review, citing potential conflicts given that Comptroller Jonathan Gould is a Trump appointee.

Public comments raised questions about non-U.S. investors. The OCC stated that those investors were not considered principal shareholders of the proposed bank and that several signed passivity agreements committing not to control or influence operations. Career staff conducted the review for consistency with statutory and regulatory requirements. Nonpolitical examiners would supervise the bank once open. The agency affirmed that Gould and staff followed legal and ethical duties.

Following the announcement, some Democratic senators indicated plans to introduce legislation aimed at restricting senior government officials from owning or controlling banks.

Broader Context for Crypto Trust Charters

World Liberty joins other digital asset firms that have sought or received similar OCC approvals in recent months. Circle obtained final authorization for its national trust bank after earlier conditional approval. Ripple, Paxos, BitGo and Fidelity Digital Assets hold conditional approvals, while additional companies have applications pending.

Uninsured national trust banks supervised by the OCC administered $7.2 trillion in assets as of March 31, with the majority in fiduciary accounts. The structure offers a path for stablecoin issuers to operate under unified federal oversight rather than multiple state regimes.

The WLFI token associated with World Liberty Financial rose modestly after the decision before partially retracing. The preliminary approval leaves the firm to satisfy capital, systems, staffing and examination requirements before any final authorization and commencement of operations.