World Liberty Financial has received preliminary approval from the Office of the Comptroller of the Currency (OCC) to establish a national trust bank. The proposed bank, World Liberty Trust Company, National Association, would operate from Bay Harbor Islands, Florida, and provide digital asset custody and issue the dollar-backed USD1 stablecoin for institutional clients across the US.
Regulatory Requirements
The OCC's conditional approval permits World Liberty Trust to organize the bank but does not allow it to start operations. The company must complete its preopening requirements, obtain final authorization under federal banking law, and maintain at least $20 million in eligible capital.
Business Plan
Under its proposed business plan, World Liberty Trust would issue and redeem USD1, maintain reserves, offer custody services, and allow customers to convert approved stablecoins into USD1. The bank would not operate as a standard commercial bank, instead focusing on trust, custody, reserve, and related payment services.
Industry Implications
The approval is part of a larger trend of crypto companies pursuing federal trust structures. World Liberty joins companies like Circle, Ripple, and Paxos in receiving conditional approval from the OCC. Once authorized to open, World Liberty Trust plans to replace BitGo Bank & Trust as the exclusive issuer and custodian of USD1.
Regulatory Scrutiny
The OCC's decision has faced scrutiny from lawmakers, including Senator Elizabeth Warren, who questioned the regulator's ability to review the application independently due to President Trump's financial interest in the company. The OCC has stated that it acted consistently with its statutory duties and ethical obligations in reviewing the application.