World Liberty wins OCC trust bank charter for $4B USD1 stablecoin

The Office of the Comptroller of the Currency granted preliminary conditional approval for World Liberty Trust Co., a national trust bank tied to President Donald Trump's crypto venture, to issue and custody the $4 billion USD1 stablecoin.

"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 and chairman of World Liberty Trust, said.

The bank, to be based in Bay Harbor Islands, Florida, must hold at least $20 million in eligible capital before opening. It plans to take over USD1 issuance and custody from BitGo Bank & Trust, which currently serves as the token's exclusive issuer and custodian, according to the OCC's decision letter.

The approval, announced Aug. 14 after a 221-day review, is the latest in a wave of OCC charters for digital asset firms. Ripple, Paxos, BitGo, and Fidelity Digital Assets hold conditional approvals, while Circle secured final approval in July.

What the charter covers

The proposed bank would issue and redeem USD1 for institutional clients nationwide, maintain the assets backing the dollar-pegged token, and provide fiduciary custody services. Conversion services would let custody customers submit approved stablecoins in exchange for USD1, though the service would be limited to assets held by the bank.

National trust banks provide custody, fiduciary, settlement, and asset-servicing functions but cannot accept ordinary deposits or issue conventional loans. A federal charter lets WLTC operate nationwide under one primary regulator rather than state-by-state licenses, placing it under regular OCC examinations and federal anti-money-laundering rules.

USD1, launched in March 2025, has surpassed $4 billion in circulation, backed by U.S. dollars held at financial institutions, government money market funds, and cash equivalents. Reuters ranked it the fourth-largest stablecoin by market capitalization. It trades on Binance, Coinbase, Kraken, Crypto.com, OKX, and Bybit, as well as decentralized exchanges Uniswap and PancakeSwap.

Trump ties draw scrutiny

World Liberty Financial's connection to the president has made the application a target of congressional attention. Sen. Elizabeth Warren asked OCC Comptroller Jonathan Gould in January to pause the review until Trump divested his financial interest. An Abu Dhabi-linked entity purchased a 49% stake for $500 million shortly before Trump returned to office.

The OCC said career staff reviewed the application under standard procedures. Three passivity commitments — formal pledges not to control or influence the bank — were filed by Eric Trump, UAE entrepreneur Hamad Khalfan Ali Matar Alshamsi, and World Liberty co-founder Zachary Folkman.

The bank will be governed by a five-member board including Witkoff, Scott Alper, Robert Witkoff, and independent directors Jeffrey Weiner and Erin Baskett. WLTC must complete preopening requirements and receive final authorization before opening; the OCC can modify, suspend, or withdraw approval if concerns arise.

Following the announcement, WLFI rose more than 2% to about $0.0597 before giving back gains, trading near $0.0558 — up about 8% over seven days but more than 65% below its level a year earlier.

The charter gives USD1 a federally supervised home at a time when stablecoin issuers are racing to secure bank status. If WLTC opens, it would consolidate issuance, custody, and reserves under one regulator — a structure that could set a template for other dollar-pegged tokens seeking legitimacy with institutional clients.

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