World Liberty Financial (WLFI) has secured preliminary conditional approval from the U.S. Office of the Comptroller of the Currency to establish World Liberty Trust Company, N.A., a federal trust bank based in Bay Harbor Islands, Florida. The OCC decision, dated Aug. 14, permits the organization of the bank but does not allow it to begin operations until it satisfies preopening requirements and receives final authorization under federal banking law.
Once approved to open, the trust company would issue and redeem the dollar-backed USD1 stablecoin for institutional clients, manage its reserve assets, and provide digital asset custody services. The bank would also allow custody customers to convert approved stablecoins into USD1 using assets already held with the institution. It would not operate as a standard commercial bank: the charter excludes ordinary retail deposits and conventional lending, focusing instead on trust, custody, reserve, and related payment services.
The OCC said the proposed bank must maintain at least $20 million in eligible capital, apply for stock in a Federal Reserve Bank, and receive written confirmation that all opening conditions have been met. Once operational, World Liberty Trust plans to replace BitGo Bank & Trust as the exclusive issuer and custodian of USD1, acquiring the token’s reserve assets and assuming related liabilities. The OCC granted an exemption from certain Regulation W limits, collateral rules, and restrictions on low-quality assets. BitGo remains responsible for USD1 issuance and custody until the transition is complete.
World Liberty Chairman and President Zach Witkoff said the structure would bring USD1 issuance, custody, and reserve management under OCC supervision, “examined on the same standards that have governed banks for generations.” The approval follows similar conditional charters for Circle, Ripple, BitGo, Fidelity Digital Assets, Paxos, Coinbase, Crypto.com, and Stripe-owned Bridge. Circle completed its preopening requirements and obtained final authorization in July.
The application has drawn political scrutiny because President Donald Trump and his three sons are affiliated with World Liberty, with a Trump family-linked entity controlling about 38% of equity interests. Senator Elizabeth Warren and nine other senators introduced the Ending Presidential Corruption in Banking Act, which would bar presidents, vice presidents, spouses, and children from owning or controlling banks. Lawmakers have also questioned a reported $500 million investment by an Abu Dhabi company backed by UAE National Security Adviser Sheikh Tahnoon bin Zayed Al Nahyan, which reportedly acquired a 49% interest in World Liberty.
Separate scrutiny has centered on MGX, another Abu Dhabi entity chaired by Sheikh Tahnoon, which used $2 billion in USD1 for an investment in Binance in May 2025. Arkham Intelligence data cited in a February report showed Binance-controlled wallets and customer accounts held about $4.7 billion of USD1, roughly 87% of the token’s $5.4 billion supply at the time. World Liberty and Binance denied an improper relationship.
