OCC grants World Liberty conditional bank charter for $4B USD1 stablecoin

The Office of the Comptroller of the Currency granted World Liberty Financial preliminary conditional approval for a national trust bank charter Friday, enabling the Trump-backed firm to issue and custody its $4 billion USD1 stablecoin under federal 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 of World Liberty Trust Company, said in a statement.

The approval follows similar conditional charters granted to Ripple, Fidelity, Paxos, and Circle, with Circle receiving full approval last month to launch the first national crypto bank. World Liberty Trust must maintain at least $20 million in capital, hire a head of internal audit, and notify the regulator of material changes to its business plan before final approval. The firm currently relies on BitGo for stablecoin custody and issuance services.

The charter, once finalized, would let World Liberty bring stablecoin services in-house — a potentially lucrative shift as USD1 ranks as the fourth-largest stablecoin with roughly $4 billion in market cap. The WLFI token rose over 2 percent to $0.0597 on the news before paring gains to around $0.0552, while Bitcoin fell below $63,000 as the broader crypto market remained in a downtrend.

Ownership scrutiny and approval conditions

The OCC's review drew scrutiny over World Liberty's ownership structure. The regulator noted that foreign investors were not considered principal shareholders of the bank, and several investors — including foreign ones — signed commitments not to seek control or influence operational decisions. Eric Trump signed as president of an investment entity affiliated with the Trump family, which owns 38 percent of World Liberty Financial.

Sen. Elizabeth Warren, D-Mass., had urged the OCC to halt the review until President Donald Trump divested from the company. Americans for Financial Reform Education Fund filed extensive comments opposing the application, citing concerns about conflicts of interest and the firm's business relationships with foreign investors, including a reported 49 percent stake held by a UAE sovereign wealth fund.

The OCC, part of the U.S. Treasury Department, has received 40 bank charter applications since 2025 — a sharp increase from the prior administration — with many tied to crypto projects. Comptroller Jonathan Gould, appointed by Trump last year, has overseen the agency's more permissive approach to crypto charters.

USD1's rapid rise

USD1, launched in March 2025, has grown to become the fourth-largest stablecoin by market cap at approximately $4 billion. Estimates suggest the Trump family earned roughly $50 million in revenue from USD1 by the end of June 2026, with more than $1.6 billion directed to the president and his family as of April.

The WLFI token is up over 5 percent in the past week but remains down more than 61 percent year-to-date, reflecting the broader crypto market downturn that has pushed Bitcoin below the $63,000 level.

The conditional approval marks another step in the OCC's push to integrate crypto firms into the federal banking system under Gould's leadership. If World Liberty meets all conditions and secures final approval, it would join Circle as one of the first crypto-native national trust banks — a development that could pressure other stablecoin issuers to pursue similar charters and reshape competitive dynamics in the stablecoin sector.

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