World Liberty Financial Nears Bank Charter After OCC Approval
- World Liberty Financial receives preliminary OCC approval for a national trust bank focused on USD1 operations.
- The proposed bank cannot open until it meets capital, governance, audit, and compliance conditions.
- Trump’s financial ties draw criticism as the OCC advances crypto firms toward federal supervision.
World Liberty Financial has secured preliminary conditional approval to establish a federally supervised national trust bank. The OCC decision moves the Trump-backed crypto venture closer to managing USD1 issuance, reserves, and institutional custody internally. Yet the approval does not authorize the bank to open. The company must meet capital, governance, and operational requirements before receiving final clearance from the regulator.
World Liberty Financial Clears First OCC Charter Review
The Office of the Comptroller of the Currency granted the application after reviewing its structure and commitments. The August 14 decision covers World Liberty Trust Company, National Association, with several pre-opening conditions.
World Liberty Financial plans to bring USD1 issuance, redemption, reserve management, and digital asset custody under one entity. The stablecoin exceeds $4 billion in circulation and ranks fourth globally.
The proposed bank would serve institutional customers, including exchanges, market makers, and investment firms. It would not accept deposits or make loans like a commercial bank.
The OCC requires at least $20 million in Tier 1 capital before operations begin. The company must establish internal audits, compliance systems, and independent risk controls.
Preliminary approval permits organizational work but does not guarantee launch. The regulator can modify, suspend, or withdraw permission if conditions change. The company must obtain separate OCC authorization before conducting trust-bank business.
Political Scrutiny Follows the Conditional OCC Decision
The charter decision has drawn scrutiny over Donald Trump’s financial connection to the venture. Disclosures report substantial income linked to its tokens and related holdings.
Senator Elizabeth Warren urged Comptroller Jonathan Gould to halt the review until Trump divests from World Liberty Financial. She argues the OCC could regulate a company financially tied to the president.
The OCC approved the application after seven public comments. Four cited conflicts of interest, foreign investment, and governance.
Certain investors signed passivity agreements limiting their influence. The agreements prevent foreign shareholders from controlling management or daily operations.
World Liberty Financial CEO Zach Witkoff said federal supervision would strengthen USD1 and the dollar’s global role. Coinbase, Paxos, BitGo, Ripple, and Circle have also entered the OCC charter process, with several securing approvals during the past year.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Anthropic's Core Concern: Revenue Can Be Withdrawn at Any Time, but Computing Power Costs Are Locked in for up to 20 Years
Zheshang Securities believes that Anthropic's revenue is mainly based on usage-based billing, with remaining performance obligations covering only about 5.1 months of annualized revenue, while compute power costs are already locked in with $895.4 billion in irrevocable commitments, some extending as far as 2045. Revenues can be reduced at any time, but costs are non-exitable, creating a highly asymmetric maturity gap between the two—this is the company's real core constraint.
Triple Pressure from the Federal Reserve, Treasury, and Congress; Goldman Sachs: Liquidity Crisis May Occur in 2027
Goldman Sachs warns that the reserve ratio of bank assets has dropped to around 11%, only slightly above the crisis trough of 2019. In the second half of 2027, a deadlock in debt ceiling negotiations will force the Treasury to rebuild the TGA, triggering a "perfect storm" of a sharp drop in reserves and a surge in T-bill supply; combined with stalled money market fund buying, this will create a huge liquidity black hole. The Federal Reserve could be forced into the awkward position of lowering interest rates and launching large-scale bond purchases to rescue the market.
U.S. Stock IPO Preview | From Losses to Net Profit of 5.46 Million: The "Three-Dimensional" Platform Business Strategy with a Taste for Golf
Crossing the break-even line, the growth inflection point has arrived.
Crypto prices
More
