World Liberty Financial has received preliminary OCC approval to establish a national trust bank that would oversee more than $4 billion in USD1 stablecoin circulation.
Summary
- World Liberty Trust must meet the OCC’s conditions before it can begin operations.
- The proposed bank would issue USD1, manage its reserves, and serve institutional custody clients.
- WLTC must maintain at least $20 million in eligible capital before opening.
- WLFI rose after the decision but remains down more than 60% over the past year.
World Liberty Financial must meet OCC conditions
The Office of the Comptroller of the Currency said on Aug. 14 that it had granted preliminary conditional approval for World Liberty Trust Company, National Association, or WLTC, after reviewing the proposed bank’s application and commitments.
World Liberty Financial submitted the application through WLTC Holdings LLC in January. As crypto.news reported at the time, the proposed trust bank was designed to bring USD1 issuance, reserve management, and institutional custody under one federally supervised entity.
Preliminary approval allows World Liberty Financial to organize the bank but does not authorize it to open. According to the OCC’s 19-page approval decision, WLTC must complete its preopening requirements and receive final authorization before starting business.
Until then, the regulator can modify, suspend, or withdraw its approval if a new development raises concerns. WLTC must also notify the OCC about major changes to its business plan before making them.
The bank will need at least $20 million in eligible capital when it opens, while its organizers must submit an updated operating plan and receive OCC non-objection. Required appointments include a qualified internal audit manager, and the regulator must approve the bank’s proposed chief financial officer before the opening date.
WLTC would operate as a wholly owned subsidiary of Delaware-registered WLTC Holdings and maintain its main office in Bay Harbor Islands, Florida. The proposed institution must also apply for stock in a Federal Reserve Bank under federal law.
USD1 operations would move from BitGo to WLTC
Once fully authorized, World Liberty Trust plans to issue and redeem USD1 for institutional clients across the United States. The bank would also maintain the assets backing the dollar-pegged token and provide fiduciary custody services to USD1 users and other institutional customers.
BitGo Bank & Trust currently serves as the exclusive issuer and custodian for USD1. After opening, WLTC intends to acquire the stablecoin’s reserve assets and assume the liabilities connected to them, according to the OCC.
The regulator said the transfer may require additional approval under federal bank merger rules. Any acquisition of reserve assets from BitGo must therefore comply with the conditions set by the agency before the transaction can proceed.
Conversion services would form another part of WLTC’s planned operations. Institutional custody customers could submit approved stablecoins and receive USD1 in return, although the service would be limited to assets held in custody by the bank.
World Liberty Financial said USD1 has surpassed $4 billion in circulation. The company lists U.S. dollars held at financial institutions, U.S. government money market funds, and cash equivalents among the assets supporting the stablecoin.
USD1 is available on centralized platforms including Binance, Coinbase, Kraken, Crypto.com, OKX, and Bybit, as well as decentralized exchanges such as Uniswap and PancakeSwap. Reuters ranked it as the fourth-largest stablecoin by market capitalization following its rapid growth since its March 2025 launch.
World Liberty Trust President and Chairman Zach Witkoff said federal supervision would place the token’s main operations under one regulator.
“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.”
He added that the company welcomed “continuous scrutiny from federal regulators.”
Federal trust bank approval does not cover lending
Despite the bank designation, WLTC would not operate like a traditional commercial lender. National trust banks generally provide custody, fiduciary, settlement, and asset-servicing functions but cannot accept ordinary customer deposits or issue conventional loans.
A federal charter would let WLTC provide approved services nationwide under one primary regulator instead of applying for separate state licenses. The structure also places its operations under regular OCC examinations, along with federal anti-money laundering and sanctions requirements.
The company said customer assets would remain segregated and reserve management would operate independently. WLTC has selected Mack McCain as chief trust officer and Daniel Dietzel, a former chief financial officer at institutional prime broker Hidden Road, as its CFO.
A five-member board would oversee the proposed bank. Alongside Zach Witkoff, the board would include Scott Alper, Robert Witkoff, and independent directors Jeffrey Weiner and Erin Baskett. According to the company, Weiner previously led accounting firm Marcum, while Baskett serves on the Financial Industry Regulatory Authority’s Board of Governors.
World Liberty joins several digital asset companies that have entered the OCC charter process since December 2025. Ripple, Paxos, BitGo, and Fidelity Digital Assets have received conditional approvals, while Coinbase, Crypto.com, and Stripe-owned Bridge have also pursued national trust bank structures.
Circle moved one step further in July when it received final approval to establish its national trust bank. Circle first obtained conditional approval in December 2025 and then completed the OCC’s preopening requirements before receiving authorization.
The OCC reported that uninsured national trust banks under its supervision held $7.2 trillion in assets under administration as of March 31. Custody and safekeeping accounts represented $1.7 trillion, while fiduciary accounts accounted for the remaining $5.5 trillion.
Trump ties keep the charter under scrutiny
World Liberty Financial’s connection to U.S. President Donald Trump and his family has made the application a subject of congressional attention. Trump and members of the Witkoff family helped launch the company in 2024, while Trump later adopted the title of co-founder emeritus.
Sen. Elizabeth Warren asked OCC Comptroller Jonathan Gould in January to pause the charter review until Trump divested his financial interest in the company. Warren said approval could leave a presidential appointee regulating a business financially connected to the president.
Questions increased after reports that an Abu Dhabi-linked entity purchased a 49% interest in World Liberty Financial for $500 million shortly before Trump returned to office. In June, Senate Democrats questioned the potential national security implications of the transaction and its effect on the charter review.
The OCC said it received public comments concerning non-U.S. investors in World Liberty Financial. According to its decision, the foreign investors were not considered principal shareholders of the proposed bank, and several investors signed agreements promising not to control or influence its operations.
Eric Trump signed one of the agreements as president of a Trump family-linked investment vehicle. The regulator said Gould and agency staff followed their legal and ethical duties, while career employees handled the application review and nonpolitical examiners would supervise the bank.
Following the announcement, WLFI initially rose more than 2% to about $0.0597 before giving back part of the advance. TradingView data later placed the token near $0.0558, up about 8% over seven days but more than 65% below its level one year earlier.
