US regulator conditionally approves bank charter for Trump-linked crypto firm

A national U.S. bank regulator has given conditional approval for a bank charter to World Liberty Financial, a cryptocurrency venture associated with former President Donald Trump and his family. This decision effectively permits an expansion of the company's stablecoin operations.

The Office of the Comptroller of the Currency (OCC) announced its preliminary approval for World Liberty Trust Company's application for a national trust charter, submitted in January. Once finalized, this charter will empower World Liberty, through its new trust bank, to manage and hold customer assets and facilitate faster payment settlements. It is important to note that the charter does not typically allow for deposit-taking or lending, functions characteristic of traditional banks.

This development comes as the cryptocurrency industry seeks such charters from the OCC, hoping to leverage the perceived crypto-friendly stance of the Trump administration. These charters enable crypto firms to hold client assets nationwide under a unified federal framework and offer settlement and asset servicing functions, which can attract major institutional clients. Notably, other crypto firms like Ripple and Circle have also received preliminary approval for similar charters under Comptroller Jonathan Gould, appointed by Trump.

For World Liberty, the charter will enable it to directly issue its USD1 stablecoin and manage the U.S. dollar assets that back it, tasks currently handled by a business partner, BitGo. The company stated in January that the trust company would cater to institutional customers, including cryptocurrency exchanges and investment firms, and provide digital asset custody and stablecoin conversion services. A spokesperson indicated that the charter would ensure robust oversight from the OCC, including regular examinations.

The charter's approval is contingent upon several conditions. World Liberty must notify the regulator of any significant changes to its business plan, maintain a minimum capital of $20 million, and appoint a qualified internal audit manager. Furthermore, the leadership of World Liberty Trust is closely linked to the Witkoff family, longtime allies of Trump. Zach Witkoff, son of Steve Witkoff, is slated to be the proposed president of World Liberty Trust, and the Witkoffs were co-founders of World Liberty Financial with Trump and his sons.