World Liberty Financial, supported by President Trump, has received initial regulatory approval to launch a US national trust bank dedicated to managing its USD1 stablecoin, now exceeding $4 billion in circulation
World Liberty Financial has secured preliminary conditional approval from the Office of the Comptroller of the Currency (OCC) to establish a new national trust bank in the United States. The planned institution, World Liberty Trust Company National Association (WLTC), will focus exclusively on the issuance, reserve management, and redemption of USD1, a US dollar-backed stablecoin. This development marks a significant regulatory milestone for the company, which first submitted its application to the OCC in January. The approval is conditional, requiring WLTC to meet a series of regulatory standards before it can begin operations.
USD1 was introduced in March 2025 through a partnership between World Liberty Financial and BitGo, a digital asset infrastructure provider listed in New York. BitGo currently oversees both the issuance and custody of USD1, but these responsibilities are expected to transition to WLTC once the new trust bank is fully operational. According to the OCC's approval letter, WLTC must appoint an internal audit manager and maintain a minimum capital base of $20 million, with at least $10 million held in eligible liquid assets. The company has also outlined a five-member board, including World Liberty Financial's founders and two independent directors, to oversee governance and compliance.
Stablecoin Oversight and Regulatory Conditions
WLTC's board will be chaired by Zach Witkoff, CEO and co-founder of World Liberty Financial, with Scott Alper, president and investment chief at Witkoff Group, and Robert Witkoff, former co-chief investment officer at The Chubb Corporation, also serving as directors. Independent oversight will be provided by Jeffrey Weiner, former chairman and CEO of Marcum LLP, and Erin Baskett, founder of Sine Qua Non Capital. Additional executive appointments include Mack McCain as chief trust officer and Daniel Dietzel, previously CFO at Hidden Road, as chief financial officer. The OCC's conditions are designed to ensure robust internal controls and adequate liquidity, reflecting the regulator's cautious approach to digital asset banking.
As of June 2026, USD1's circulation has surpassed $4 billion, making it one of the largest US dollar-backed stablecoins managed outside traditional banking channels. The OCC's conditional approval does not specify a launch date for WLTC, and the company must demonstrate full compliance with all regulatory requirements before it can assume direct control of USD1's issuance and reserves. This move comes amid heightened scrutiny of stablecoin issuers and digital asset custodians in the US, as regulators seek to balance innovation with financial stability and consumer protection.
Context and Industry Implications
The OCC's decision to grant preliminary approval to a trust bank focused solely on stablecoin operations signals a cautious but notable shift in US regulatory policy. While the OCC has previously approved trust charters for digital asset firms, the scale and political backing of World Liberty Financial's USD1 project set it apart. The involvement of President Donald Trump as a backer has drawn additional attention to the venture, highlighting the intersection of digital currency innovation and US financial regulation. For comparison, recent moves by major payment and banking firms to expand into digital assets have also attracted regulatory scrutiny, as seen in Visa's acquisition activity and TMX Group's investment in MEMX, discussed in recent coverage of fintech sector developments.
According to OCC filings, the trust bank structure allows for direct federal oversight of stablecoin issuance, custody, and reserve management under established banking standards. This approach is intended to provide greater transparency and risk management compared to non-bank stablecoin issuers, which often operate under state-level or less comprehensive regulatory frameworks. The OCC's requirements for minimum capital and liquid assets are designed to mitigate the risk of sudden redemptions or operational failures, a concern that has grown as stablecoins have become more widely used in payments and settlements.
Stablecoin Trust Banks: Mechanisms and Trade-Offs
Trust banks specializing in stablecoin operations occupy a unique position in the US financial system. Unlike traditional commercial banks, trust banks do not engage in lending or deposit-taking but instead focus on fiduciary services, asset custody, and specialized payment functions. For stablecoin issuers, this structure offers a pathway to federal oversight without the full regulatory burden of a commercial banking license. However, trust banks must still meet stringent requirements for governance, capital, and risk management, and their activities are subject to ongoing examination by the OCC. This model aims to address concerns about the stability and transparency of digital dollar tokens while allowing for continued innovation in the payments sector.
