The US banking regulator OCC has granted the Trump crypto firm World Liberty Financial conditional preliminary approval for a national trust bank charter. The company may therefore issue the stablecoin USD1 itself in future and keep the dollar reserves in its own custody.
A national trust charter is not a full banking licence. It permits the custody and administration of client assets and allows faster payment settlement. However, it does not cover deposit-taking or lending. Donald Trump, his three sons and the Witkoff family co-founded World Liberty Financial in late 2024. Zach Witkoff, son of Trump's special envoy Steve Witkoff, runs the firm. The company first announced the stablecoin USD1 in March 2025. Its charter application followed in January 2026 through WLTC Holdings LLC. Meanwhile, USD1 has become the fourth-largest stablecoin by market capitalisation, with roughly USD 4 billion in circulation. The decision is not final, though.
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World Liberty plans USD1 custody under its own bank charter
So far, BitGo Bank & Trust handles both the issuance and the reserve custody of USD1. Issuance means the creation of new USD1 units, while reserve custody covers the dollar holdings behind the stablecoin. In future, World Liberty intends to take on both functions itself. The planned bank will sit in Bay Harbor Islands, Florida. Still, the trust bank may not accept deposits or extend loans. According to its own statements, the company is not seeking federal deposit insurance either. Nor does it want a master account at the Federal Reserve.
The preliminary approval comes with conditions. World Liberty must first hold at least USD 20 million in capital, at least half of it in liquid assets. The company also has to report material changes to its business plan and hire a qualified internal audit manager. Furthermore, the firm must meet all "preopening requirements" of the approval before it starts operations. The OCC can amend, suspend or revoke its commitment at any time. The preliminary approval is therefore an interim step, not an operating licence.
Zach Witkoff, president and chairman of World Liberty Trust, reads the approval as a gain in supervision. Issuance, custody and reserve management then sit in one entity under federal oversight.
"A national trust bank brings USD1 issuance, custody and reserve management together under OCC supervision, examined by the same standards that have governed banks for generations. We welcome the ongoing, multi-year examination by federal regulators." - Zach Witkoff, President and Chairman, World Liberty Trust
Trump family benefits directly from the approval
The Trump family holds 38% of World Liberty Financial. The stake sits in an entity sponsored by Donald Trump Jr. and other family members. Eric Trump, the president's son, also signed a so-called "passivity agreement" as president of a family investment vehicle. In it, he pledges to exert no influence on the bank's business. The pledge does not change the ownership structure, however.
According to Reuters calculations, more than USD 1.6 billion flowed from World Liberty to the president and his family. That total covers the period through April 2026. From USD1 alone, the family earned roughly USD 50 million by the end of June 2026. But the billion-dollar figure covers the firm's entire business, the USD 50 million only the stablecoin. At the same time, the charter concerns exactly the business segment those earnings come from.
The decision draws political criticism because of the regulator's structure as well. The OCC belongs to the US Treasury, and a single comptroller heads it. In contrast, other US financial regulators work with a bipartisan board. That is precisely where criticism of the decision's independence starts. Still, the agency points to its duties. Comptroller Jonathan Gould and his team decided on the application "consistent with their legal duties and ethical obligations". Reuters quoted that wording from the approval letter.
OCC opens trust charter path for more stablecoin issuers
World Liberty is not the first stablecoin issuer with such a commitment. Previously, in December 2025, the OCC under Comptroller Gould conditionally approved five comparable applications. Circle, Ripple, Paxos, BitGo and Fidelity Digital Assets were among them. A commitment for Crypto.com followed later. BitGo, the current USD1 custodian, is thus pursuing the same licence as its own client.
Circle received final approval in July 2026. Ripple still holds the conditional commitment. The payments provider must meet the capital conditions by mid-December 2026. Until June 2027, it has time to start operations. At World Liberty, seven months passed between the application and the preliminary approval.
The crypto industry is pushing harder for this licence format. That is because one single federal licence permits custody of client assets nationwide. Winning institutional clients becomes easier. Consequently, the OCC's role in stablecoin supervision grows with every further charter.
Democratic senators introduce bill against conflicts of interest
Resistance comes from the Senate. In February 2026, two Democratic members of the Senate Banking Committee called for a review by Treasury Secretary Scott Bessent. At issue were the national security implications of a reported USD 500 million stake in World Liberty Financial. Specifically, reports link that stake to the national security adviser of the United Arab Emirates. The demand went to the Treasury Department, which oversees the OCC.
At a congressional hearing in the same month, Democrats demanded that Comptroller Gould disclose the unredacted application confidentially. Yet the public version carried no complete details on capital structure and business plan. Later, after the approval, Senator Elizabeth Warren along with Senators Angela Alsobrooks and Ruben Gallego introduced a bill. The "Ending Presidential Corruption in Banking Act" would bar senior government officials from owning or controlling banks. The move targets the World Liberty setup directly. Nevertheless, the preliminary approval remains untouched.
Leadership of the planned trust bank stays within the orbit of the founding families. Robert Witkoff, brother of Steve Witkoff and a former insurance executive, will become a director. Scott Alper, president of the Witkoff family's real estate business, is another planned director. Both come from the insurance and property sectors. Meanwhile, Zach Witkoff leads the parent company World Liberty Financial. Whether the trust bank actually starts operations depends on how it meets the OCC conditions.
