World Liberty Trust Wins Preliminary Federal Bank Charter Approval

The Office of the Comptroller of the Currency has granted preliminary conditional approval for World Liberty Trust Company to operate as a national trust bank. The approval allows the Trump-linked crypto venture to conduct fiduciary and trust-related activities, though final approval depends on meeting additional requirements before the bank can officially open.

Stablecoin Issuance Set to Shift

Under the approval, World Liberty Trust Company plans to take over issuance of the USD1 stablecoin for institutional clients nationwide, a role currently held by another banking partner. The company also plans to provide digital asset custody services primarily to USD1 customers and other institutional clients as a fiduciary.

Political Controversy Surrounds the Approval

The charter application, filed earlier this year, drew opposition from Democratic lawmakers concerned about potential conflicts of interest, given the president’s ownership stake in the broader business and his role appointing banking regulators. One senator had previously challenged the agency’s approval process for crypto-related trust charters, arguing such firms seek to avoid standard banking safeguards. The regulator maintained that career staff reviewed the application strictly for legal and regulatory compliance.

Lawmakers Push Back With New Legislation

Following the announcement, several Democratic senators said they would introduce legislation aimed at preventing senior government officials from owning or controlling a bank. The move adds to ongoing tension in Congress, where broader digital asset legislation remains stalled over ethics provisions related to the president’s crypto business interests.

The trust company does not intend to become a federally insured institution or gain access to a Federal Reserve master account, according to the regulator’s letter.