CoinDesk
The Office of the Comptroller of the Currency granted preliminary conditional approval to World Liberty Trust Co. on Friday, paving the way for a federally chartered national trust bank focused on USD1 stablecoin issuance and digital asset custody. The bank will issue USD1 to institutional clients nationwide, taking over from BitGo Bank & Trust as the current exclusive issuer and custodian. Final approval hinges on the company satisfying additional preopening requirements laid out in the OCC's approval letter.
Why it matters
This is a federally chartered trust bank purpose-built around one stablecoin, a structural elevation that lifts USD1 issuance and custody into the federal banking charter system. The application drew opposition from Democratic lawmakers citing President Trump's ownership stake in the broader World Liberty entities and an Abu Dhabi investment firm's position in World Liberty Financial. The OCC letter states career staff reviewed the application for legal and regulatory consistency, an attempt to insulate the approval from the political noise around the applicant. The charter explicitly excludes federal deposit insurance and a Federal Reserve master account, leaving World Liberty Trust as a limited-purpose national trust bank rather than a full-service depository.
Market impact
The charter pulls USD1 inside a federally regulated perimeter at the issuer and fiduciary level, a template competitors and other stablecoin projects are likely to study closely. BitGo loses its exclusive issuer and custodian role for USD1 even as it continues as a partner, a notable structural shift for one of the dollar-pegged tokens that grew rapidly through 2025. Watch for the preopening requirements to land and for competing trust-bank charter applications to accelerate, including from other stablecoin issuers seeking federal legitimacy without taking on the full weight of an insured-depository charter.
Frequently asked questions
-
What did the OCC approve for World Liberty Trust Co.?
The OCC granted preliminary conditional approval for World Liberty Trust Co. to operate as a national trust bank focused on USD1 stablecoin issuance and digital asset custody. Final approval requires the company to satisfy additional preopening requirements.
-
Why did World Liberty Trust apply for a national trust bank charter?
The charter lets World Liberty Trust issue USD1 to institutional clients nationwide and provide digital asset custody as a fiduciary. It takes over the exclusive issuer and custodian role from BitGo Bank & Trust.
-
Will World Liberty Trust have FDIC insurance or a Federal Reserve master account?
No. The OCC's approval letter states the bank does not intend to become a federally insured depository institution or access a Federal Reserve master account. It operates as a limited-purpose national trust bank.
-
What political concerns were raised about the charter application?
Democratic lawmakers opposed the application citing President Trump's ownership stake in the broader World Liberty entities and an Abu Dhabi investment firm's position in World Liberty Financial. The OCC says career staff reviewed the application for legal and regulatory consistency.
-
When did World Liberty apply for the charter?
World Liberty applied for the charter in January. The OCC granted preliminary conditional approval on Friday, contingent on the company meeting the preopening requirements laid out in the regulator's letter.
CoinTelegraph
TheBlock
CryptoSlate