The Office of the Comptroller of the Currency (OCC) has issued preliminary approval for World Liberty Financial to create a national trust bank. This new entity will be tasked with the issuance and management of the USD1 stablecoin, provided the company meets specific capital requirements.
The $20 million capital mandate for World Liberty Trust
To move from preliminary to final approval, the proposed World Liberty Trust Company must maintain a minimum of $20 million in capital, with at least 50% of those funds held in liquid assets... According to the report, this specific charter is restrictive; the bank will be prohibited from making conventional loans or accepting federally insured deposits.
Instead, the World Liberty Trust Company will focus on institutional services, including the safeguarding of digital assets and the redemption of USD1 tokens. The OCC noted that these activities are permitted under current federal banking laws, positioning the entity as a specialized custodian rather than a retail bank.
Moving the $4 billion USD1 stablecoin in-house
The transition represents a significant shift in the infrastructure of USD1, which launched in March 2025 and has since become the fourth-largest stablecoin with a market value of approximately $4 billion. Currently, the issuance and backing assets for USD1 are managed by BitGo Bank & Trust.
By establishing its own trust bank, World Liberty Financial would bring the reserves and issuance of USD1 under the direct supervision of a federal regulator.. As the source reported, the company intends for this bank to primarily serve investment firms, cryptocurrency exchanges, and other institutional clients.
The clash between Senator Warren and Jonathan Gould
The approval process was marked by intense political friction, specifically from Senator Elizabeth Warren of Massachusetts. During a February hearing,Warren urged Comptroller of the Currency Jonathan Gould to deny the application, claiming that Donald Trump's financial interests in World Liberty Financial created a conflict of interest and calling Gould an "accomplice" to corruption.
Senator Warren specifically questioned the disclosure of investors linked to the United Arab Emirates and demanded access to unredacted application documents. Jonathan Gould defended the OCC's independence, stating that the only political pressure he encountered came from Warren herself, and assered that career examiners—not political appointees—reviewed the application.
The GENIUS Act and the surge to 15 new charters
The OCC's decision leans on the GENIUS Act, which explicitly allows uninsured national banks to issue stablecoins. this move is part of a broader regulatory pivot; while the OCC approved zero charters for new banks in 2024 during the final year of the Biden presidency, it has approved 15 so far this year, including seven in 2025.
World Liberty Financial is not alone in this trend, as the OCC has granted similar preliminary approvals to other digital-asset firms, including Paxos, Ripple, Fidelity Digital Assets, BitGo, and Foris DAX (the parent of Crypto.com). this surge suggests a systemic effort by the OCC to welcome new entrants into the federal banking system to compete in the digital asset space.
Unresolved questions regarding ownership and control
Despite the aproval, several points remain opaque. While the OCC claims that foreign investors will not own or control the proposed bank, the specific identities of the UAE-linked investors mentioned by Senator Warren have not been publicly disclosed. Furthermore,it remains to be seen if the three investors—including a firm led by Eric Trump—will strictly adhere to their agreement to avoid management or board roles as the bank scales.
Comments 0