World Liberty Financial's USD1 Stablecoin Receives Preliminary Approval to Operate as a Federal Trust Company
World Liberty Financial, the cryptocurrency venture backed by the Trump family, has received preliminary conditional approval from the Office of the Comptroller of the Currency (OCC) for its trust company to operate as a federally chartered national trust bank. The proposed entity would issue and redeem USD1, World Liberty's dollar-backed stablecoin with approximately $4 billion in market value, while also offering digital-asset custody services primarily for institutional clients. The approval is not final; the OCC emphasized that full authorization depends on meeting all pre-opening requirements before operations can begin. The proposed bank would be a subsidiary of WLTC Holdings LLC and based in Florida. It plans to take over USD1's reserve management from BitGo Bank & Trust, which currently serves as its custodian. The decision aligns with the GENIUS Act, allowing national banks to issue stablecoins under specific conditions. The proposed bank will focus on trust company operations rather than traditional banking functions like lending or accepting deposits.
Topics: crypto federal banking regulation stablecoin trust company