US Regulator Gives Conditional Bank Charter Approval to Trump-Backed Crypto Firm

World Liberty Financial, the cryptocurrency venture associated with US President Donald Trump and his family, has received conditional preliminary approval from a federal banking regulator to establish a national trust bank.

The Office of the Comptroller of the Currency (OCC) granted the approval on Friday, clearing a major regulatory hurdle for the company as it seeks to expand its stablecoin business through a new entity called World Liberty Trust Company.

The approval is conditional, meaning World Liberty Trust must still satisfy regulatory requirements and undergo further examination before receiving final operational approval.

If the process is completed, the trust bank will be able to issue and manage World Liberty Financial’s dollar-backed USD1 stablecoin and hold the assets backing the digital currency under its own federal charter.

USD1 has rapidly expanded since its launch and now has a market value of about $4 billion, making it one of the largest stablecoins in the cryptocurrency market. The company currently relies on BitGo for the issuance of the token and custody of its reserves.

The new charter would allow World Liberty to bring those functions in-house while also providing digital-asset custody and payment-related services.

However, the approval does not turn World Liberty Trust into a conventional commercial bank. A national trust charter does not allow the institution to accept ordinary deposits or engage in traditional lending.

The development has generated controversy because of the Trump family’s financial ties to World Liberty Financial.

Critics, including Democratic lawmakers, have raised concerns about potential conflicts of interest because the company is linked to the president while the OCC is headed by Comptroller Jonathan Gould, a Trump appointee.

The OCC has defended its review process, saying career staff handled the application and that the comptroller complied with applicable ethical and legal obligations.

World Liberty Financial was founded in 2024 by members of the Trump family and the family of Steve Witkoff, a longtime Trump ally. Its expansion comes as the Trump administration pursues policies aimed at giving cryptocurrency businesses a clearer path into the US financial system.

The approval also comes amid wider efforts in Washington to establish a comprehensive regulatory framework for digital assets. The US Senate recently advanced discussions around the proposed Clarity Act, which would define regulatory responsibilities for cryptocurrencies and other digital assets.

For World Liberty Financial, the conditional charter represents a significant step towards integrating its stablecoin business with the traditional US financial system.

The company will, however, have to meet the OCC’s conditions before the trust bank can begin operating fully under the national charter.