OCC Grants Conditional Bank Charter to Trump-Backed World Liberty Financial

The Office of the Comptroller of the Currency (OCC) conditionally approved a national trust bank charter for World Liberty Trust Co. on August 14, 2026. The Trump family-backed venture now has a preliminary path to issue its USD1 stablecoin, manage digital asset custody, and handle reserves under federal supervision, according to an OCC letter published on the agency’s website.

This regulatory shift moves World Liberty from relying on third-party infrastructure to operating its own financial plumbing. Currently, the firm utilizes BitGo for the custody of U.S. dollar assets and the issuance of its stablecoin. By securing a national trust charter, World Liberty can consolidate these functions, reducing counterparty risk and potentially lowering operational overhead.

The Mechanics of the National Trust Charter

A national trust charter differs fundamentally from a commercial bank license. According to Reuters, the charter allows World Liberty Trust Co. to hold assets and settle payments for customers nationwide under a single federal umbrella, but it does not permit the firm to take deposits or engage in traditional lending. This distinction is critical for the firm’s balance sheet, as it avoids the capital requirements associated with fractional reserve banking while gaining the prestige of OCC supervision.

The OCC’s approval is not a final green light. The agency imposed several conditions that must be met before the bank can officially open its doors. World Liberty must maintain a minimum of $20 million in capital and hire a qualified internal audit manager. Additionally, the firm is required to notify the OCC of any significant changes to its business plan.

Zach Witkoff, President and Chairman of World Liberty Trust, described the approval as a “milestone.” In a statement released Friday, Witkoff noted that the bank would bring issuance, custody, and reserve management together under the same standards that have governed banks for generations.

Addressing Foreign Investment and Conflict Concerns

The application process was not without friction. The OCC revealed in its approval letter that it received comments regarding the influence of non-U.S. investors in World Liberty Financial. Specifically, Democratic members of the U.S. Senate Banking Committee had previously questioned the Treasury secretary about a reported $500 million stake linked to the United Arab Emirates’ national security adviser, according to Reuters.

To mitigate these concerns, the OCC secured “passivity agreements” from several investors. These legal documents ensure that outside investors—including those outside the U.S.—cannot control or influence the bank’s daily operations or strategic decisions. Eric Trump signed one such agreement in his capacity as president of a Trump-family affiliated investment vehicle.

Fox Business reported that the OCC rejected objections regarding regulatory favoritism and potential conflicts of interest. The regulator stated that career staff reviewed the application using established procedures.

Strategic Implications for the Stablecoin Market

World Liberty is entering a crowded field of digital dollars. By issuing USD1 directly, the firm aims to compete with established stablecoins like USDC and USDT. The goal, as stated by Zach Witkoff in a post on X, is to build the “most trusted and widely used digital dollar in the world.”

The move follows a broader trend under Comptroller Jonathan Gould, whom Trump appointed to the role last year. Other crypto-native firms, including Circle and Ripple, have also received preliminary approval for similar charters.

The financial stakes are high. Stablecoin issuers generate significant revenue through the “float”—the interest earned on the U.S. Treasury bills and cash reserves that back the tokens. By bringing reserve management in-house, World Liberty Trust Co. captures 100% of this yield rather than sharing it with a partner like BitGo.

The Path to Final Approval

World Liberty Trust Co. will be headquartered in Bay Harbor Islands, Florida. Before it can begin operations, the firm must prove it can maintain the $20 million capital cushion and satisfy the OCC’s audit requirements. The firm is currently 38% owned by an entity affiliated with Donald J. Trump and his family members, per the company’s own website.