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OCC Grants World Liberty Conditional Bank Charter Approval
The U.S. Office of the Comptroller of the Currency granted preliminary conditional approval to World Liberty Trust Company for a federal bank charter on August 14, 2026, clearing a major regulatory step for the Trump-affiliated entity to issue USD1 stablecoin and provide digital asset custody.
The Office of the Comptroller of the Currency granted preliminary conditional approval to World Liberty Trust Company for a federal bank charter on Friday, August 14, 2026, marking a regulatory milestone for the Trump-affiliated crypto entity. The approval clears the way for World Liberty to operate fiduciary and trust company-related activities as a national trust bank, per CoinDesk's reporting.
World Liberty Trust Company plans to issue USD1, a fiat currency-backed stablecoin for institutional clients on a nationwide basis, and assume issuance responsibilities from BitGo Bank and Trust, National Association, the current exclusive issuer and custodian. The entity also intends to provide digital asset custody services to USD1 customers and other institutional clients operating as a fiduciary.
The approval comes seven months after World Liberty applied for the charter in January 2026. The OCC stated in its letter that the preliminary conditional approval was granted based on a thorough evaluation of information available to the agency, including representations and commitments made in the application and by the Bank's representatives. Career OCC staff reviewed the application for consistency with legal and regulatory requirements.
World Liberty Trust Company has stated it will not become a federally insured depository institution or seek a Federal Reserve master account, limiting its integration into the traditional banking system. Final approval remains contingent on the entity meeting additional preopening requirements not specified in the OCC's announcement.
Senator Elizabeth Warren has voiced skepticism about crypto trust bank approvals by the OCC. In May 2026, Warren challenged Comptroller Jonathan Gould, arguing that the OCC was approving unqualified crypto banks seeking to issue stablecoins and access the banking system while evading fundamental safeguards and obligations that come with being a bank. After Warren asked the OCC to halt World Liberty's application, Gould responded that the agency would proceed on its normal timeline without considering politics. Democratic lawmakers have raised concerns over World Liberty's ties to President Trump, who appointed the regulators overseeing the OCC and other relevant agencies.
World Liberty and USD1 came under additional scrutiny after an Abu Dhabi investment firm purchased a stake in World Liberty Financial in the prior year, though the size and identity of that stake have not been disclosed in available reporting.
World Liberty Trust Company received preliminary conditional approval to operate as a national trust bank and issue USD1, a fiat-backed stablecoin, but final approval hinges on meeting additional preopening requirements.
World Liberty has cleared a regulatory threshold, but preliminary approval is not final approval. Watch for the specific preopening requirements the entity must meet, the timeline for final approval, and any regulatory action or legislative response from Democratic lawmakers. The absence of Federal Reserve access and FDIC insurance keeps World Liberty structurally separated from the traditional banking system; any announcement that these limits will be removed would materially alter the story.
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