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U.S. regulator conditionally approves Trump-linked World Liberty trust charter

U.S. regulator conditionally approves Trump-linked World Liberty trust charter

The OCC's preliminary approval would let the Trump-linked crypto venture shift USD1 issuance and custody from BitGo into a federally supervised trust company, subject to capital, pre-opening and compliance conditions.

USD1

Fact Check
Multiple authoritative sources confirm the claim. CoinDesk and the Reuters-syndicated WTVB report both state the OCC granted preliminary conditional approval of a national trust charter to World Liberty Trust Company on August 14, 2026. WTVB confirms the charter would let the venture directly issue USD1 and custody the dollar reserves backing it under federal oversight, and that it remains a preliminary/conditional (not final) approval subject to conditions. It also confirms the conflict-of-interest criticism from Democrats. Reuters independently corroborates the conditional approval. Every element of the claim is supported.
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Summary

World Liberty Trust Company, National Association has received preliminary conditional approval from the Office of the Comptroller of the Currency, giving the Trump-linked World Liberty Financial venture a path to operate a national trust bank that would take over issuance and custody of the USD1 stablecoin from BitGo Bank & Trust. The Aug. 14 approval remains preliminary and conditional: the proposed bank must raise at least $20 million in tier 1 capital, satisfy pre-opening requirements and commence business within 18 months, while the OCC said it may modify, suspend or rescind the approval if circumstances change. The agency said the trust bank would issue USD1 to institutional clients nationwide, handle redemption and reserve maintenance in a non-fiduciary capacity, provide fiduciary digital asset custody and offer conversion services allowing custody clients to exchange approved stablecoins for USD1. The OCC also granted an exemption under Regulation W for the planned transfer of USD1 reserve assets and related liabilities from BitGo to the new bank, while keeping the transaction subject to safety and soundness standards. The application drew conflict-of-interest objections tied to U.S. President Donald J. Trump, the Witkoff family and foreign investors, but the OCC said career staff reviewed the filing under delegated authority and that World Liberty Financial, Inc. and its foreign investors are not parties to the bank application. The decision adds to a broader wave of crypto trust charter activity that has prompted debate over the OCC's chartering authority, including criticism from Senator Elizabeth Warren.

Terms & Concepts
  • national trust bank: A federally chartered institution focused on trust and custody activities rather than insured deposit-taking.
  • Regulation W: U.S. banking rules that limit certain transactions between a bank and its affiliates to reduce conflicts and risk transfer.
  • fiduciary custody: Asset custody provided under a legal duty to act in the client's best interest.