Home Trump-backed World Liberty Wins Conditional Bank Charter From Federal Regulator

Trump-backed World Liberty Wins Conditional Bank Charter From Federal Regulator

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Trump-backed World Liberty Wins Conditional Bank Charter From Federal Regulator
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World Liberty Financial, the crypto venture backed by Donald Trump’s family, has been conditionally approved for a national trust bank charter from the Office of the Comptroller of the Currency.

The conditional approval was granted to World Liberty Trust Company, and it serves as a critical step towards establishing a bank charter for the crypto-focused entity. Notably, the approval is subject to certain conditions, and World Liberty must fulfill the requirements for the charter to become fully approved.

The trust company, which will be a subsidiary of World Liberty, is expected to engage in fiduciary and custody services, as opposed to offering traditional banking services. One of the most notable elements of the plan involves USD1, World Liberty’s dollar-backed stablecoin.

According to the OCC’s approval letter, World Liberty Trust Company plans to take over USD1 issuance for institutional customers from BitGo Bank & Trust. The proposed bank would also provide digital-asset custody services to USD1 customers and other institutional clients.

The charter does not mean World Liberty will immediately operate like a traditional deposit-taking bank. The company does not plan to become a federally insured depository institution and does not intend to seek a Federal Reserve master account.

The development has attracted political attention because of World Liberty’s connection to President Donald Trump. Critics argued that Trump’s involvement with the cryptocurrency industry poses risks, particularly in terms of potential conflicts of interest between his political aspirations and business dealings.

Nevertheless, the conditional approval marks a significant milestone for the crypto-friendly lender, as it provides the foundation for a banking charter. Once fully approved, World Liberty will be able to play a more prominent role in stablecoin markets and custody services.

At the same time, the development reflects a broader trend among crypto firms, with stablecoin issuers and other crypto-native institutions seeking to gain charters from national regulators. For the wider market, World Liberty’s application demonstrates how crypto businesses are attempting to move deeper into the regulated financial system.

If the charter eventually receives final approval, World Liberty could become another example of a crypto-native company building regulated financial infrastructure around stablecoins and digital assets.

 

 

 

Stay informed with the latest trends in Web3, blockchain innovation, and cybersecurity updates at 3verseTV

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