The OCC (Office of the Comptroller of the Currency) announced that it has granted preliminary conditional approval for the establishment of a federally chartered National Trust Bank (federal trust bank) to "World Liberty Trust Company, National Association," a related entity of World Liberty Financial, a cryptocurrency-related company supported by U.S. President Donald Trump and his family.
This marks a step forward for the company in opening a financial institution under direct federal supervision. The preliminary approval is a decision made after reviewing legal and regulatory requirements, but it is not the final licensing.
If the company fails to meet regulatory conditions such as increasing its capital before opening, the regulatory authorities retain the authority to revoke the approval. The company will proceed with final procedures to obtain a business commencement permit from the OCC.
The main business after obtaining approval will be the management of the dollar-pegged stablecoin "USD1," which has a market capitalization of approximately $4 billion (about ¥636.27 billion), and services for institutional investors.
The company plans to transfer and centralize the issuance and custody functions, which had previously relied on external cryptocurrency management firm BitGo, to its own nationwide trust bank. CEO Zach Witkoff stated that by operating under strict federal regulatory standards, they aim to enhance the credibility of USD1 and build a digital dollar that reinforces the value of the U.S. dollar.
The bank does not plan to engage in typical deposit-taking activities that are insured or to acquire a master account with the Federal Reserve (FRB), but will focus on trust and settlement infrastructure for cryptocurrency exchanges and institutional investors.
Similar preliminary approvals for trust licenses have been granted in the past to major cryptocurrency-related companies such as Ripple, Circle, and Paxos, and this is becoming standardized as a method for Web3 companies to reduce reliance on existing banking systems and comply with federal regulations. Following the announcement, the company's unique WLFI token temporarily rose by more than 2%.
On the other hand, this approval has sparked significant political controversy. The Trump family is said to earn substantial business profits from this project, holding 38% of the group's shares. It is the first time in U.S. history that a government agency has recognized the banking status of a business owned by the sitting president and his family, who are in a position to appoint the heads of federal regulatory agencies.
Democratic Senator Elizabeth Warren and others have strongly opposed this, calling it "an unprecedented shameless act of self-dealing (profit inducement)." They pointed out that the president had previously requested a halt to the review of Trump's stock sales. Additionally, Democratic lawmakers have expressed their intention to introduce a bill to end "presidential corruption in banking operations" that prohibits government officials from owning or controlling banks.
In response, the White House and related parties argue that there is no conflict of interest because the president's assets are held in a trust managed by his family (a blind trust). Furthermore, the OCC stated, "We eliminated political considerations and conducted an objective review in accordance with established regulations and procedures," emphasizing fairness. Moving forward, clearing the opening requirements and completing the transfer of the "USD1" issuance business will be the company's next significant challenge.
This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.









![[Editorial] 'Tokenization of Everything'... Whose Innovation Is It?](/public-static/18_26310349ce.png?format=avif)



















