World Liberty Trust Co., an entity tied to the Trump family, has received preliminary conditional approval from the U.S. Office of the Comptroller of the Currency, or OCC, to organize as a federal trust bank, according to CoinDesk and a report cited by ABMedia. The approval, dated Aug. 14, would allow the company to pursue trust and fiduciary business and take over issuance of the fiat-backed USD1 stablecoin, replacing BitGo Bank & Trust in that role.
The company also plans to offer digital asset custody services as a fiduciary for institutional clients across the United States. Still, the OCC decision does not amount to full operating approval. World Liberty must first satisfy a set of pre-opening requirements before it can formally begin operations. The application was originally submitted in January this year.
The move has already drawn renewed criticism from Democratic lawmakers. Because part of World Liberty is owned by members of President Trump’s family, Senator Elizabeth Warren and other Democrats have again raised conflict-of-interest concerns. Warren had previously criticized OCC Comptroller Jonathan Gould in May over approving what she described as unqualified crypto banks, while Democrats also pushed the End Presidential Bank Corruption Act.
World Liberty Trust Co., an entity linked to the Trump family, received preliminary conditional approval from the U.S. Office of the Comptroller of the Currency on Aug. 14 to organize as a federal trust bank, according to CoinDesk, in a development that would let it take over issuance of the USD1 stablecoin.
Approval opens path to trust banking business
The charter would allow World Liberty Trust Co. to conduct trust and fiduciary-related business. The company plans to issue the fiat-backed USD1 stablecoin to institutional clients across the United States, assuming a role previously handled by BitGo Bank & Trust, while also offering digital asset custody in its capacity as a fiduciary.
The approval is only preliminary. World Liberty must still complete a series of pre-opening requirements before it can begin operating formally. The company filed its application in January this year.
Democrats renew conflict-of-interest criticism
Because part of World Liberty is owned by the Trump family, Democrats including Senator Elizabeth Warren again raised concerns about potential conflicts of interest.
In May, Warren questioned OCC head Jonathan Gould over approving what she called unqualified crypto banks. Democrats also backed the End Presidential Bank Corruption Act.
As a stablecoin issuer moves closer to securing a federal bank charter, scrutiny is intensifying over the relationship between a president’s family business interests and financial regulation.
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