OCC grants conditional charter to World Liberty Trust for USD1 stablecoin

The Office of the Comptroller of the Currency has conditionally approved a national trust bank charter for World Liberty Trust Company, the entity behind World Liberty Financial. The preliminary approval enables the Trump family-backed firm to directly issue its USD1 stablecoin and custody the U.S. dollar assets backing it, transitioning these functions from current partner BitGo. The decision places the stablecoin business within the federal banking supervisory system, marking a significant shift in the company’s operational structure.

Unlike a traditional commercial bank charter, the approved national trust structure does not permit deposit-taking or lending. Instead, it provides a single federal framework for custody, asset servicing, and settlement. World Liberty Financial has indicated that this structure is central to its plans for institutional clients, including exchanges and investment firms, allowing it to operate under a unified regulatory umbrella rather than relying on third-party custodians.

The approval is subject to strict conditions before the trust company can commence full operations. World Liberty Trust must maintain at least $20 million in capital and appoint a qualified internal audit manager. The company is also required to notify the regulator of any major changes to its business plan. World Liberty spokesperson David Wachsman stated that the structure ensures robust OCC oversight, including regular examinations, thereby integrating the stablecoin operations directly into the federal regulatory framework.

The application has faced political scrutiny from Democratic lawmakers, who questioned whether a regulator appointed by President Donald Trump could review the application without a conflict of interest. The OCC denied these allegations, asserting that career staff handled the review process. Comptroller Jonathan Gould and agency employees acted in accordance with statutory and ethical obligations, according to the regulator, which maintained that the decision was based on regulatory standards rather than political influence.

USD1 has grown rapidly since its launch in 2025 and now holds a market capitalisation of approximately $4 billion, making it the fourth-largest stablecoin. The approval opens a path for World Liberty to consolidate issuance, reserves, and custody under one federally regulated entity. World Liberty Financial’s digital token, $WLFI, is currently trading at $0.056 U.S. dollars, reflecting market interest in the firm’s regulatory progress.