OCC grants Trump-linked World Liberty a conditional trust charter

The Office of the Comptroller of the Currency said Friday it had granted "preliminary conditional approval" to World Liberty Trust Co., a company tied to World Liberty Financial that counts President Donald Trump among its owners. The charter, if finalized, would make it a national trust bank, putting digital-asset custody and stablecoin issuance inside a regulated fiduciary structure.

The letter describes a bank that would take over issuance of USD1, a fiat-backed stablecoin, from BitGo Bank & Trust, the coin's current exclusive issuer and custodian, and would act as a fiduciary custodian of digital assets for institutional clients. Final authorization still depends on unspecified "preopening requirements."

The application has drawn criticism since World Liberty filed in January. Democratic lawmakers, led by Senator Elizabeth Warren, argued that a Trump-owned bank would create a conflict of interest, since the president appoints the officials who run the OCC. In May, Warren pressed Comptroller Jonathan Gould, accusing him of waving through unqualified crypto banks. Gould said the agency would ignore politics and stick to its normal timeline.

The letter pushes back on those concerns, saying "career OCC staff" reviewed the application for consistency with legal and regulatory requirements. It also acknowledges the scrutiny: an Abu Dhabi investment firm bought a stake in World Liberty Financial last year, and the purchase was raised in public comments, the letter says.

Democrats were unmoved. Warren and several colleagues said they would introduce the "Ending Presidential Corruption in Banking Act," legislation designed to block senior government officials from owning or controlling a bank.

If the charter is finalized, World Liberty would not be the first crypto-friendly trust bank: BitGo already holds a trust charter. It would, however, be the first with direct ties to a sitting president. The conditional approval also shows the OCC under Gould is willing to move politically sensitive applications ahead despite congressional pressure.

The letter sets no date for final approval. It also leaves open how long the preopening requirements will take and whether the final charter will restrict the bank's relationship with World Liberty Financial or its stablecoin operations.

For the broader market, the practical effect may be modest at first. USD1 is an institutional stablecoin, and the custody business the charter enables is tied to that product. But a national trust charter that explicitly treats crypto custody and stablecoin issuance as fiduciary activities would give other issuers a template for escaping the state-by-state money-transmitter patchwork.

The political debate will continue, but the letter is now on the record. Every future applicant for a national trust charter will have to measure itself against it.