• The OCC has conditionally approved World Liberty Financial's application to establish a national trust bank
• The proposed institution will issue and manage the USD1 stablecoin and provide institutional digital asset custody
• Zach Witkoff said OCC supervision would strengthen confidence in reserve management and governance
• The approval has drawn criticism because of the Trump family's ownership interest and reported foreign investment
• Senator Elizabeth Warren and consumer advocates have questioned potential conflicts of interest
• The bank must satisfy OCC capital and liquidity requirements before beginning operations



The Office of the Comptroller of the Currency (OCC) has granted preliminary conditional approval for World Liberty Financial to establish a national trust bank, marking another significant step in the integration of digital assets into the U.S. banking system while reigniting concerns over political conflicts of interest.

The proposed institution, World Liberty Trust, will issue and manage the company's USD1 stablecoin while providing digital asset custody and reserve management services for institutional clients.

Before commencing operations, however, the bank must satisfy a series of supervisory conditions imposed by the OCC, including minimum capital and liquidity requirements.

The approval represents a milestone for World Liberty Financial, which was founded by Zach Witkoff alongside President Donald Trump's sons Eric Trump, Donald Trump Jr. and Barron Trump.

When the bank charter application was submitted in January, President Trump was listed as the company's co-founder emeritus.

"What makes a stablecoin trustworthy is the strength of the reserve behind it, and who stands accountable for it," Witkoff said in a statement.

"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.

“We welcome continuous scrutiny from Federal regulators for many years to come."

The charter would place the company's stablecoin operations under the supervision of the OCC, a structure supporters argue could strengthen confidence in reserve management and governance as stablecoins become a larger component of the financial system.

According to World Liberty Financial, USD1 has already surpassed $4 billion in circulation.

Once operational, the trust bank will be responsible for issuing and redeeming the stablecoin, managing the assets backing it and providing digital asset custody services to institutional customers.

The decision nevertheless has attracted strong criticism from lawmakers and consumer advocates, who argue that granting banking charters to crypto firms could expose the broader financial system to heightened risks associated with digital assets, including volatility, fraud and financial crime.

Political concerns have also become central to the debate because of the Trump family's ownership interest in the business.

Reports indicate the family owns 38% of World Liberty Financial, while an investment firm based in the United Arab Emirates reportedly holds a 49% stake.

Senator Elizabeth Warren, the ranking Democrat on the Senate Banking Committee, questioned Comptroller of the Currency Jonathan Gould earlier this year over whether the foreign ownership structure had been fully disclosed during the charter application process.

"If you follow the law, you will reject the president's application," Warren said during the hearing.

"As soon as you approve that application – and we all know you're going to approve it – you go from being a cheerleader for President Trump to an accomplice in his corruption."

Gould declined to discuss the details of the pending application during the hearing.

Criticism has also come from advocacy groups. Patrick Woodall, Managing Director of Americans for Financial Reform Education Fund, argued that approving the charter creates unprecedented governance concerns because of the relationship between the regulator and the president's family.

"Granting a bank charter to the First Family's crypto firm poses unprecedented risks because it creates insurmountable conflicts of interest," Woodall said.

He added that the OCC could not "credibly or impartially supervise or examine the Trump family crypto bank" or ensure it operates safely while protecting customers.

Before opening, World Liberty Trust must comply with several conditions outlined by the OCC.

These include maintaining at least $20 million in Tier 1 capital, with a minimum of $10 million, or half of total Tier 1 capital if greater, held in eligible liquid assets.

The proposed institution must also maintain sufficient liquidity to cover 180 days of operating expenses.

The trust bank will be overseen by a five-member board chaired by Witkoff and including senior executives with backgrounds in investment management, insurance, accounting and financial regulation.