World Liberty Financial, the Trump family-backed crypto venture, has secured conditional approval from the Office of the Comptroller of the Currency to establish a national trust bank, marking a significant step toward bringing stablecoin operations under direct federal oversight. The OCC announced the approval on August 14, 2026, for World Liberty Trust Company, which will issue and manage the USD1 stablecoin and provide digital asset custody services.
The conditional charter allows World Liberty to take direct control of USD1 operations from BitGo Bank and Trust, where the stablecoin is currently custodied. USD1 has reached over $4 billion in circulation, according to the company. Zach Witkoff, co-founder and CEO of World Liberty Financial and son of Trump’s Middle East negotiator Steven Witkoff, will serve as chairman of the trust company.
Before commencing operations, World Liberty Trust must satisfy specific conditions outlined in the OCC’s approval letter. The bank must maintain a minimum of $20 million in Tier 1 capital, with at least $10 million—or 50% of that capital, whichever is greater—held in eligible liquid assets such as cash or government obligations maturing within 90 days or less. The company must also maintain 180 days of operating expenses in reserve.
The five-member board governing the trust company includes Witkoff; Scott Alper, president and chief investment officer of Witkoff Group; Robert Witkoff, former co-chief investment officer of insurance firm Chubb; Jeffrey Weiner, former CEO of accounting firm Marcum; and Erin Baskett, a member of the Financial Industry Regulatory Authority’s board of governors.
World Liberty’s approval follows a broader regulatory trend of stablecoin issuers obtaining federal banking charters. In December 2025, the OCC conditionally approved five crypto-focused firms—Circle, Ripple, Paxos, BitGo, and Fidelity Digital Assets—for national trust bank charters. Circle became the first stablecoin issuer to receive final OCC approval in July 2026, advancing its ability to manage reserves backing its USDC stablecoin under federal supervision.
The regulatory framework governing these charters derives from the GENIUS Act, which established comprehensive federal standards for payment stablecoin issuers. Under the act, issuers must maintain reserves backed dollar-for-dollar by high-quality liquid assets such as cash or short-term U.S. Treasuries. For large issuers with $25 billion or more in outstanding issuance, the OCC requires maintaining at least 0.5% of reserve assets in bank or credit union deposits on each business day.
The approval has drawn sharp criticism from Democratic lawmakers and consumer advocates over conflict-of-interest concerns. Sen. Elizabeth Warren, D-Mass., stated that “President Trump is now the first President in history to approve, operate, and supervise his own bank,” calling it “the most brazen act of self-dealing our financial system has ever seen.” Warren said she and colleagues would introduce legislation to prevent presidents and senior government officials from owning or controlling banks.
The Trump family owns 38% of World Liberty Financial, according to the company’s website. Nearly 49% is owned by an investment firm in the United Arab Emirates, according to reporting by Reuters and The Wall Street Journal. Americans for Financial Reform Education Fund, a consumer nonprofit, opposed the conditional approval, citing World Liberty’s business relationships with foreign investors and concerns about stablecoin volatility and fraud risks.
The OCC’s charter application process for World Liberty took 221 days—nearly twice the 120-day review period that Comptroller Jonathan Gould had previously advertised his agency would spend reviewing charter applicants. The approval was issued under authority delegated by the Comptroller to career staff, according to the OCC’s decision letter. The agency stated that staff reviewed the application in accordance with established policies and procedures and that staff receive regular training on ethics and legal responsibilities.
The charter does not extend to depository services for the trust bank. World Liberty Trust will also not issue, custody, or deal in World Liberty tokens, according to the OCC decision letter. The bank’s digital asset custody services will operate primarily for USD1 customers and other institutional clients, with conversion services allowing custody customers to exchange approved stablecoins for USD1.
Sources
- Banking Dive — conditionally approved charter, capital requirements, board composition, and criticism from consumer advocates
- American Banker — conditional approval details, review timeline, passivity commitments, ownership structure, and regulatory decision letter
- CNBC — OCC conditional approval, stablecoin operations, ownership, and Sen. Warren’s statement
- Reuters — UAE firm ownership stake and World Liberty’s stablecoin operations
- Gibson Dunn — GENIUS Act reserve requirements and regulatory framework for stablecoin issuers
- Banking Dive (December 2025) — Circle, Ripple, Paxos, BitGo, and Fidelity conditional approvals
- CNBC (July 2026) — Circle’s final OCC approval and USDC reserve management
