World Liberty Financial has received conditional approval from the OCC to establish a national trust bank for issuing and managing the USD1 stablecoin, shifting control from BitGo and introducing new regulatory and capital requirements
The Office of the Comptroller of the Currency (OCC) has conditionally approved World Liberty Financial's application to form a national trust bank, a move that could reshape the stablecoin landscape in the United States. The new entity, World Liberty Trust Company, National Association, would be based in Bay Harbor Islands, Florida, and is designed to take over issuance and custody of the USD1 stablecoin from BitGo, its current provider. While the OCC's decision marks a significant regulatory milestone, the bank cannot begin operations until it secures final approval and meets all outstanding requirements within an 18-month window.
Stablecoin Control and Regulatory Conditions
World Liberty Financial's USD1 is a dollar-pegged stablecoin with a reported market capitalization of $4 billion, ranking it fourth among stablecoins by circulating supply. The proposed trust bank would not only issue and custody USD1 but also offer digital-asset custody services as a fiduciary, including the ability for clients to convert other approved stablecoins into USD1. The OCC's conditional approval comes with a $20 million minimum capital requirement and mandates compliance with the GENIUS Act, a federal law enacted last year to regulate stablecoin issuers. The bank will not accept deposits, will not be covered by Federal Deposit Insurance Corporation (FDIC) insurance, and does not plan to seek a Federal Reserve master account. It has also committed to remaining outside the definition of a "bank" under the Bank Holding Company Act.
Ownership, Oversight, and Public Scrutiny
The application has drawn attention due to World Liberty Financial's connections to former President Trump and the involvement of Zachary Witkoff, who is listed as organizer, director, and president of the proposed bank. Eric Trump signed passivity commitments for an investing entity tied to the application. Public comments submitted during the OCC's review period raised concerns about the Trump family's financial interests, the Witkoffs' roles, and the participation of Emirati investors. Some submissions questioned potential conflicts under the Emoluments Clause of the U.S. Constitution. The OCC dismissed most objections, stating that World Liberty Financial itself is not the applicant and that such concerns fall outside the scope of a charter review. Senator Elizabeth Warren urged the OCC to halt the process, arguing that approval could create regulatory conflicts and allow the president's company to benefit from rules it influences. Warren has also criticized the OCC's broader approach to crypto charters, claiming it allows firms to operate as banks without full regulatory oversight. OCC chief Jonathan Gould, formerly of Bitfury, has publicly supported clear federal supervision for crypto companies.
Market Impact and Industry Context
The OCC's decision follows a trend of federal regulators granting conditional charters to digital-asset firms, including Circle, Ripple, Paxos, Fidelity, Coinbase, and BitGo. The move comes as stablecoin regulation intensifies in the U.S., with the GENIUS Act prompting more crypto companies to seek federal banking charters. Financial disclosures released in June showed that Donald Trump received millions of dollars linked to World Liberty Financial. The company's leadership has stated its goal is to make USD1 the most trusted and widely used digital dollar globally, aiming to strengthen the U.S. dollar's role in international markets. The stablecoin sector continues to evolve, with major payment networks like Visa expanding stablecoin payout capabilities, as seen in their recent integration of onchain prefunding and payouts through Visa Direct, detailed in EgonCoin's coverage of Visa's global stablecoin expansion.
As of August 2026, USD1's reported $4 billion market capitalization places it behind Tether (USDT), USD Coin (USDC), and Dai in the stablecoin rankings. The GENIUS Act, which took effect in 2025, requires stablecoin issuers to meet federal standards for reserve management, disclosures, and operational risk. The OCC's $20 million capital requirement for World Liberty Trust Company is in line with recent regulatory expectations for digital-asset trust banks. The bank's commitment to forgo FDIC insurance and a Federal Reserve master account distinguishes it from traditional depository institutions, reflecting a model increasingly common among stablecoin issuers seeking federal charters.
Stablecoin issuers operating under federal trust charters face a unique regulatory environment compared to traditional banks. While they may benefit from clearer federal oversight and the ability to serve institutional clients, they do not receive deposit insurance or direct access to Federal Reserve payment systems. This structure can limit their ability to offer certain financial services but may also reduce some compliance burdens associated with full banking status. As stablecoin regulation continues to evolve, the distinction between trust-chartered issuers and traditional banks will remain a critical factor for users, investors, and policymakers navigating the digital dollar ecosystem.
