World Liberty Financial has received preliminary conditional approval from the U.S. Office of the Comptroller of the Currency (OCC) to establish a national trust bank focused on its USD1 stablecoin.
The OCC said on Aug. 14 that it had approved the application for World Liberty Trust Company, National Association (WLTC), subject to additional requirements before the institution can begin operations.
According to the OCC's official approval decision, the proposed bank would provide fiduciary, custody and other trust-related services while operating under federal supervision.
The approval is not yet a final banking authorization. WLTC must satisfy the OCC's preopening conditions and receive final approval before it can begin conducting business.
USD1 issuance could move under WLTC
One of the most significant parts of the proposal is the planned transfer of USD1-related operations to the new bank.
World Liberty Financial plans for WLTC to eventually issue and redeem USD1 for institutional customers across the United States. The bank would also manage reserves backing the stablecoin and provide digital asset custody services.
The OCC said WLTC intends to take over USD1 issuance and custody from BitGo Bank & Trust, which currently serves as the stablecoin's exclusive issuer and custodian.
World Liberty Financial previously submitted its bank charter application through WLTC Holdings in January. The proposed structure would place USD1 issuance, reserve management and institutional custody under a federally regulated trust bank.
World Liberty Financial says USD1 has surpassed $4 billion in circulation, making the stablecoin an increasingly important part of its broader crypto ecosystem.
The company says USD1 is backed by assets including U.S. dollars held with financial institutions, U.S. government money market funds and cash equivalents.
OCC sets conditions before the bank can open
The preliminary approval comes with several requirements.
WLTC must have at least $20 million in eligible capital when it opens and must submit an updated operating plan to the OCC. The regulator must also issue a non-objection before the bank begins operations.
The proposed bank must appoint qualified executives, including an internal audit manager, while the OCC must approve its chief financial officer.
WLTC would operate as a wholly owned subsidiary of WLTC Holdings LLC and maintain its main office in Bay Harbor Islands, Florida.
The institution must also apply for stock in a Federal Reserve Bank as required under federal law.
Importantly, the OCC retains the ability to modify, suspend or withdraw the preliminary approval if circumstances change or new concerns emerge.
WLTC would not operate like a traditional bank
Despite receiving a national trust bank charter, WLTC would not function as a conventional commercial bank.
The proposed institution would focus primarily on custody, fiduciary services, settlement and digital asset-related activities rather than traditional lending.
A national trust bank generally does not operate as an ordinary deposit-taking bank or provide conventional commercial loans.
For World Liberty Financial, the structure could provide a nationwide regulatory framework for its USD1 operations while placing the stablecoin's issuance and custody functions under direct OCC oversight.
The company also said customer assets would remain segregated and reserve management would operate independently.
USD1 could gain a stronger institutional framework
The planned bank structure could become an important step in World Liberty Financial's effort to expand USD1 among institutional customers.
Once authorized, WLTC would be able to provide approved services nationwide under federal supervision rather than relying on a patchwork of state-level licensing requirements.
The OCC said the proposed bank would also be subject to regular examinations and applicable federal requirements, including anti-money laundering and sanctions obligations.
World Liberty Trust President and Chairman Zach Witkoff said the structure would bring USD1's core operations under one regulator.
“A national trust bank brings USD1 issuance, custody, and reserve management together under OCC supervision.”
The company said it welcomed continued oversight from federal regulators.
Trump ties continue to attract scrutiny
The approval comes despite continued political scrutiny surrounding World Liberty Financial because of its connections to U.S. President Donald Trump and his family.
Trump and members of the Witkoff family helped launch World Liberty Financial in 2024, while Trump later took the role of co-founder emeritus.
The company's ownership and business relationships have drawn questions from lawmakers, particularly around potential conflicts of interest involving the Trump administration and federal financial regulators.
Sen. Elizabeth Warren previously urged OCC Comptroller Jonathan Gould to pause the charter review until Trump divested his financial interest in the company.
The OCC said public comments raised concerns about World Liberty's foreign investors. However, the regulator concluded that the investors were not considered principal shareholders of the proposed bank and noted that certain investors had signed agreements limiting their ability to control or influence the institution.
The OCC also said career staff reviewed the application for compliance with applicable legal and regulatory requirements.
World Liberty joins growing crypto banking push
World Liberty Financial is not the only digital asset company seeking access to the U.S. banking system.
Several major crypto companies have pursued national trust bank structures as regulators increasingly consider how digital assets can fit into the traditional financial system.
Companies including Ripple, Paxos, BitGo and Fidelity Digital Assets have received conditional approvals, while Coinbase, Crypto.com and Bridge have also pursued similar structures.
The OCC's approval process therefore represents a broader shift toward regulated crypto banking infrastructure in the United States.
Circle moved further along this path in July after receiving final OCC approval to establish its national trust bank, following its earlier conditional approval and completion of the regulator's preopening requirements.
What happens next for World Liberty and USD1?
The latest OCC decision does not mean WLTC can immediately begin operating.
World Liberty Trust must first complete the regulator's remaining preopening requirements and obtain final authorization.
The proposed transition of USD1 issuance and reserve custody from BitGo to WLTC could also require additional regulatory approval.
If the bank ultimately receives final authorization, World Liberty Financial would have a federally supervised structure dedicated to USD1 issuance, reserve management and institutional digital asset custody.
For the broader crypto market, the development highlights how stablecoins are increasingly moving toward regulated banking infrastructure. It also adds another major institutional player to the growing intersection between stablecoins, traditional finance and U.S. banking regulation.
