World Liberty Financial bank charter approved, $4B stablecoin gains federal oversight

World Liberty Financial's conditional bank charter approval requires investors to stay sidelined from governance, a first for DeFi-banking hybrids under federal regulation.

The Office of the Comptroller of the Currency granted World Liberty Financial conditional approval on Aug. 14 to operate a national trust bank, requiring the Trump family-backed crypto venture's investors to remain non-voting and non-controlling in the bank's governance.

"Our ambition is clear: to build the most trusted and widely used digital dollar in the world while strengthening the role of the U.S. dollar across the global economy," Zach Witkoff, CEO of World Liberty Financial, said in a social media statement.

The charter for World Liberty Trust Company, National Association allows the firm to issue and manage its USD1 stablecoin, which has reached roughly $4 billion in circulation, and provide digital asset custody services. The conditional approval requires at least $20 million in Tier 1 capital, with $10 million held in eligible liquid assets such as cash or short-term U.S. Treasuries, plus 180 days of operating expenses in reserve. The OCC's decision letter also prevents the Trump family entity that owns 38 percent of World Liberty Financial from influencing how the trust company is run. The five-member board includes Witkoff, Scott Alper, Robert Witkoff, Jeffrey Weiner, and Erin Baskett.

The approval follows a broader regulatory push to bring stablecoin issuers under federal supervision. In December 2025, the OCC conditionally approved Circle, Ripple, Paxos, BitGo, and Fidelity Digital Assets for national trust bank charters under the GENIUS Act framework. Circle became the first stablecoin issuer to receive final OCC approval in July 2026. The GENIUS Act requires issuers to maintain reserves backed dollar-for-dollar by high-quality liquid assets, with large issuers holding at least 0.5 percent of reserve assets in bank deposits on each business day.

Governance conditions and political scrutiny

The investor sidelining condition marks a notable shift for a DeFi venture transitioning into traditional banking. World Liberty Financial's ownership structure includes a nearly 49 percent stake held by an investment firm in the United Arab Emirates, according to Reuters and The Wall Street Journal. The OCC's decision letter states that career staff, not the comptroller himself, reviewed the application in accordance with established policies and procedures.

The approval has drawn sharp criticism from Democratic lawmakers. Sen. Elizabeth Warren, D-Mass., called it "the most brazen act of self-dealing our financial system has ever seen" and said she would introduce legislation to prevent presidents and senior government officials from owning or controlling banks. The Trump family has made nearly $800 million from World Liberty Financial since Trump returned to the White House, according to his financial disclosure.

The charter application took 221 days to process, nearly twice the 120-day review period that Comptroller Jonathan Gould had advertised. The trust bank will not accept customer deposits or issue loans, and it will not issue, custody, or deal in World Liberty tokens. Digital asset custody services will operate primarily for USD1 customers and other institutional clients.

World Liberty Trust must satisfy all OCC conditions before commencing operations, including appointing a qualified internal audit manager and notifying the regulator of any major business plan changes. The approval could set a precedent for how DeFi projects transition into or partner with traditional banking institutions, while the political controversy surrounding the Trump family's ownership stake may intensify scrutiny of the final approval process. For WLFI token holders, the regulatory milestone adds a layer of federal oversight that could influence how the market prices the project's long-term viability.

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