The U.S. Office of the Comptroller of the Currency (OCC) has finally granted conditional green light to World Liberty Trust Co. on August 14, 2026, to operate as a national trust bank. This initial approval paves the way for the Trump family-affiliated crypto firm to focus on fiduciary and digital asset custody services, making it one of the most closely watched political entities to enter the formal banking system.
The first step prepared is to issue USD1, a fiat-backed stablecoin, for institutional clients nationwide. Up to now, the USD1 token has been exclusively issued by BitGo Bank & Trust. With the new permission from the OCC, the role of minting and managing the stablecoin will be taken over by World Liberty Trust. Besides handling the stablecoin supply, they will also provide specialized custody services for institutional customers holding USD1.
Why Democrats Are Trying to Block It
The charter application process, which was submitted in January 2026, has consistently faced fierce opposition from House Democrats. The root of the issue boils down to one name: Donald Trump’s direct involvement as a shareholder in the World Liberty entity. Tensions peaked last May when Senator Elizabeth Warren openly challenged Comptroller Jonathan Gould. Warren accused the regulator’s head of approving a crypto bank entity that actually fails to meet national banking standard requirements.
The debate heated up further after an Abu Dhabi-based investment firm was found to have acquired shares in World Liberty Financial early last year. Despite the continuous wave of opposition, the OCC dismissed all negative allegations. They emphasized that the August 14 approval was purely the result of a thorough review by the agency’s career staff, without any political intervention or considerations. This news immediately triggered reactions on social media, as evidenced by a tweet from the WatcherGuru account on X regarding this federal bank charter, which received hundreds of likes from the crypto community.
Not Seeking Fed Access
Despite its status as a national bank, World Liberty Trust stated from the beginning that it does not intend to become a federally insured depository institution. Their application documents also confirmed that this entity is not seeking access to a master account at the Federal Reserve. This position limits their traditional banking functions, but on the other hand, it actually paves the way in the digital asset fiduciary sector without being hindered by the strict requirements of commercial banks.
The green light from the OCC is only an initial conditional approval. World Liberty Trust Co. still must meet a series of pre-opening conditions before receiving final approval to fully operate, open custody vaults, and mint USD1 tokens. Now the burden of proof shifts to the management of this new crypto bank: can they safeguard institutional funds amidst a heating political climate, or will this federal permission instead become new ammunition for opponents to attack the Trump family’s business practices.
Reported by CoinDesk.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
