OCC Gives Preliminary Conditional Approval for World Liberty Trust Bank Charter

The Office of the Comptroller of the Currency (OCC) issued a letter on Friday granting preliminary conditional approval for World Liberty Trust Company, National Association, to obtain a national trust bank charter. The bank, to be headquartered in Bay Harbor Islands, Florida, would focus on issuing and redeeming the USD-1 stablecoin, maintaining reserve backing, and providing digital-asset custody services to institutional clients.

World Liberty Financial, which states it is 38% owned by an entity affiliated with Donald J. Trump and family members, said the decision marks a "milestone" in its effort to launch the bank. President and Chairman Zach Witkoff, the son of former Trump special envoy Steve Witkoff, said the bank would bring stablecoin issuance, custody and reserve management under OCC supervision and expressed willingness to remain under federal scrutiny.

The OCC noted that the approval is conditional; the bank must meet a series of requirements before it can begin operations and receive final approval. The agency also addressed concerns raised by commenters about potential conflicts of interest, foreign investment, stablecoin regulation, FDIC insurance and perceived regulatory favoritism, concluding that the application complied with statutory and policy standards.

An OCC official told reporters that new de novo banks are important for a healthy financial system, adding that they introduce new ideas, products and services that increase competition, drive innovation and expand consumer choice.