US regulator approves bank charter for Trump-backed crypto company World Liberty Financial
By Lawrence Delevingne and Pete Schroeder Aug 14 (Reuters) - A national U.S. bank regulator on Friday conditionally approved a bank charter application linked to President Donald Trump and his famil…
Aug 14 (Reuters) - A national U.S. bank regulator on Friday conditionally approved a bank charter application linked to President Donald Trump and his family's crypto venture, World Liberty Financial, effectively greenlighting an expansion of its stablecoin operations.
The Office of the Comptroller of the Currency said in a letter published on its website that it has granted conditional preliminary approval of World Liberty Trust Company's application for a national trust charter, which it applied for in January.
The charter, if ultimately approved at a later date, would allow World Liberty, through the newly created trust bank, to manage and hold assets on behalf of customers and settle payments faster. It does not generally permit deposit-taking or lending like traditional banks.
Hoping to capitalize on the Trump administration's crypto-friendly stance, the industry has been knocking on the OCC's door for such charters. They allow crypto companies to hold assets on behalf of clients nationwide under a single federal charter, as well as to provide other settlement and asset servicing functions — making it easier to court major institutional clients.
Other crypto firms, including Ripple and Circle, have received preliminary approval for such charters under Comptroller Jonathan Gould, whom Trump appointed to the role last year.
In the case of World Liberty, the charter would allow it to directly issue its USD1 stablecoin, as well as custody the U.S. dollar assets backing it, both of which are now handled by a business partner, BitGo.
In a statement on Friday, the firm welcomed the conditional approval, calling it a "milestone" in its efforts to open the bank.
"A national trust bank brings USD1 issuance, custody, and reserve management together under OCC supervision, examined on the same standards that have governed banks for generations. We welcome continuous scrutiny from Federal regulators for many years to come," Zach Witkoff, World Liberty Trust president and chairman, said in a statement.
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