The OCC granted conditional preliminary approval to World Liberty Trust Company, allowing the Trump-linked firm to directly handle USD1 stablecoin issuance and custody. The decision marks a pivotal moment in integrating stablecoins into the regulated U.S. banking system.
🔑 Key Takeaways
- Conditional preliminary approval granted on August 14, 2026
- Minimum capital requirement: $20 million
- Full GENIUS Act compliance required within 18 months
- Zachary Witkoff appointed as chairman of the trust bank
OCC opens the door to trust-chartered stablecoins
The Office of the Comptroller of the Currency (OCC) announced on August 14, 2026, the conditional preliminary approval of World Liberty Trust Company, National Association. The new institution, headquartered in Bay Harbor Islands, Florida, will be able to issue and redeem USD1, the dollar-pegged stablecoin launched by World Liberty Financial. It will take over this role currently held by BitGo, the asset’s exclusive issuer and custodian.
The trust bank will also provide digital asset custody services (safekeeping of crypto assets on behalf of clients) and allow holders of approved stablecoins to convert their holdings into USD1. As a national trust bank, it will not accept deposits, will not be FDIC-insured, and will not hold a master account at the Federal Reserve for the time being. The institution has also committed to remaining outside the definition of a « bank » under the Bank Holding Company Act.
« Our ambition is clear: to build the most trusted and widely used digital dollar in the world while reinforcing the role of the U.S. dollar in the global economy. »
Zach Witkoff, Co-founder, World Liberty Financial
Approval conditions and corporate governance
The approval comes with strict requirements. World Liberty Trust Company must hold at least $20 million in capital, fully comply with the GENIUS Act—the federal stablecoin law enacted in 2025—and hire a qualified internal audit chief. The institution has 18 months to open its doors.
The governance structure mirrors the entanglement between the Trump family and the World Liberty ecosystem:
| Member | Role |
|---|---|
| Zachary Witkoff | WLF Co-founder, Chairman |
| Robert Witkoff | Former insurance executive, Director |
| Scott Alper | President of Witkoff Group, Director |
| Eric Trump | Passive investment commitment signed |
Zachary Witkoff is also the son of Steve Witkoff, President Trump’s special envoy to the Middle East—a proximity that has fueled conflict-of-interest criticism.
Political backlash and regulatory battles
The approval process drew substantial criticism. The OCC disclosed that it received comments flagging potential conflicts of interest involving the president, his family, the Witkoffs, and Emirati investors in World Liberty, along with concerns tied to the Foreign Emoluments Clause (the constitutional provision barring federal officials from accepting emoluments from foreign states without Congressional consent).
The regulator largely dismissed these concerns, ruling them outside its scope and noting that World Liberty Financial itself is not a party to the application. In response, Comptroller of the Currency Jonathan Gould, appointed by Trump, stated that the agency would act without political considerations and would proceed with its review on its usual timeline.
« These institutions want to escape the basic safeguards and obligations that come with bank status. »
Elizabeth Warren, U.S. Senator (D-Massachusetts)
Alongside Senators Angela Alsobrooks and Ruben Gallego, Elizabeth Warren plans to introduce the Ending Presidential Corruption in Banking Act, aimed at preventing senior officials from owning or controlling a bank. Separately, negotiations over the Digital Asset Market Clarity Act remain stalled in the Senate, as Democrats insist on an ethics provision requiring the president to divest from crypto ventures.
The National Community Reinvestment Coalition (NCRC), which represents more than 700 community organizations, also formally opposed the application. It argued that the OCC lacks the legal authority to issue national trust charters to crypto and stablecoin firms, claiming such charters exceed the powers granted by the National Bank Act and would enable regulatory arbitrage.
USD1, a stablecoin at the heart of a financial empire
Launched in March 2025, USD1 now ranks as the fourth-largest stablecoin by market capitalization, with roughly $4 billion in circulation. Reuters estimated that the Trump family generated approximately $50 million in revenue from the stablecoin through the end of June 2026. In total, World Liberty Financial has transferred more than $1.6 billion to the U.S. president and his family since April.
Several strategic partnerships have reinforced USD1’s position:
- In May 2025, MGX, an Abu Dhabi government-backed firm led by Tahnoun bin Zayed Al Nahyan, announced it would use $2 billion in USD1 to fund a deal with crypto exchange Binance.
- An entity linked to the Abu Dhabi royal family later acquired a 49% stake in World Liberty Financial for $500 million, just days before Trump’s January 2026 inauguration—a transaction not publicly disclosed by World Liberty.
- The Trump administration subsequently approved a plan allowing one of Tahnoun’s firms to receive hundreds of thousands of advanced AI chips, despite national security concerns.
The World Liberty charter fits into a broader wave of national trust bank approvals granted by the OCC to digital asset firms, including Circle, Ripple, Paxos, Fidelity, and BitGo—reflecting the gradual normalization of digital assets within the regulated banking system.
Conclusion
The conditional approval of World Liberty Trust Company represents a structural step for the dollar-backed stablecoin ecosystem. It paves the way for an issuance model directly integrated into the federal banking framework, subject to GENIUS Act compliance and capital commitments. However, potential conflicts of interest and the legislative standoff over the Clarity Act could slow the Trump administration’s momentum and trigger new Congressional hearings.
In the short term, USD1 could consolidate its market share and benefit from a regulatory credibility signal. Over the medium term, its trajectory will depend heavily on political developments in Washington and regulators’ ability to resolve the ethical governance questions surrounding this approval.
Sources
This article is for informational and educational purposes only. It does not constitute investment advice. Do your own research (DYOR) before making any decisions.
