World Free Financial receives OCC approval to establish a USD1 bank

World Liberty Financial has received preliminary approval from the Office of the Comptroller of the Currency (OCC) to establish a national trust bank to supervise the circulation of more than US$4 billion in USD1 stablecoins.

Summary

World Liberty Trust must meet OCC conditions before it can start operations. The proposed bank will issue USD1, manage its reserves, and provide services to institutional custody customers. WLTC must maintain a qualifying capital of at least US$20 million before opening. WLFI rose after the news, but still fell more than 60% over the past year.

World Liberty Financial must meet OCC conditions

The Office of the Comptroller of the Currency said on August 14 that it had granted preliminary conditional approval after reviewing its application and commitments. World Liberty Financial submitted its application in January through WLTC Holdings LLC. The proposed trust bank aims to unify USD1 issuance, reserve management, and institutional custody under one federal regulatory entity.

Preliminary approval allowed World Liberty Financial to form a bank, but did not authorize it to start operations. According to the OCC's 19-page approval decision, WLTC must complete pre-opening requirements and obtain final authorization before starting business. Until then, regulators could modify, suspend or revoke their approval if new circumstances arise that raise concerns. The WLTC must also notify the OCC before making significant changes to its business plan.

The bank needs to have at least US$20 million in qualifying capital when it opens, and its organizers must submit an updated operating plan and obtain non-objection confirmation from the OCC. The required appointments include a qualified internal audit manager and regulators must approve the bank's proposed chief financial officer before opening. WLTC will operate as a wholly owned subsidiary of Delaware registered WLTC Holdings, with its main office in the Gulf Harbor Islands, Florida. The proposed agency would also have to apply to hold stock in the Federal Reserve Bank under federal law.

USD1 operations will be transferred from BitGo to WLTC

Once fully authorized, World Liberty Trust plans to issue and redeem USD1 for institutional customers across the United States. The bank will also maintain the assets that support the dollar-linked token and provide entrusted custody services to USD1 users and other institutional customers. BitGo Bank & Trust is currently the exclusive issuer and custodian of USD1. According to the OCC, WLTC plans to acquire the reserve assets of the stablecoin and assume related liabilities after it opens. Regulators said the transfer may require additional approval under federal bank consolidation rules. Therefore, any acquisition of reserve assets from BitGo must meet the conditions set by the institution before it can proceed.

Conversion services will become another part of WLTC's planned operations. Institutional custody customers can submit approved stablecoins and receive USD1 in return, but this service is limited to assets held in bank custody. World Liberty Financial said USD1 in circulation has exceeded US$4 billion. The company listed U.S. dollars held by financial institutions, U.S. government money market funds and cash equivalents as assets supporting the stablecoin. USD1 can be traded on centralized platforms including Binance, Coinbase, Kraken, Crypto.com, OKX and Bybit, as well as decentralized exchanges such as Uniswap and PancakeSwap. Since its launch in March 2025, USD1 has grown rapidly. According to a news agency, its market value has become the fourth largest stablecoin.

Zach Witkoff, President and Chairman of World Liberty Trust, said federal regulation would place the token's primary operations under a single regulatory agency. "A national trust bank has unified the issuance, custody and reserve management of USD1 under the supervision of the OCC and subject it to inspection according to the same standards that have governed banks for generations." He added that the company welcomes "continued review by federal regulators."

Federal Trust Bank approval excludes loan business

Although recognized as a bank, WLTC operates differently from traditional commercial lenders. National trust banks usually provide custody, trusteeship, settlement and asset service functions, but cannot accept deposits from ordinary customers or issue regular loans. The federal license will allow WLTC to provide approved services nationwide and be subject to supervision by only one major regulatory agency, rather than applying for separate state licenses. This structure also places its operations under regular inspections by the OCC and federal anti-money laundering and sanctions requirements. The company said customer assets will remain isolated and reserve management will operate independently.

WLTC has selected Mack McCain as its chief trust officer and Daniel Dietzel, former chief financial officer of institutional major broker Hidden Road, as its chief financial officer. A five-member board will oversee the proposed bank. In addition to Zach Witkoff, the board also includes Scott Alper, Robert Witkoff, and independent directors Jeffrey Weiner and Erin Baskett. According to the company, Weiner previously led accounting firm Marcum, while Baskett served on the board of directors of the Financial Industry Regulatory Agency (FINRA).

World Liberty has become one of several digital asset companies to enter the OCC licensing process since December 2025. Ripple, Paxos, BitGo and Fidelity Digital Assets have received conditional approval, while Coinbase, Crypto.com and Stripe's Bridge are also seeking a national trust bank structure. Circle went one step further in July, receiving final approval to establish its national trust bank. Circle first received conditional approval in December 2025, and subsequently completed OCC's pre-opening requirements and was authorized. The OCC reported that as of March 31, the assets under management of uninsured national trust banks under its supervision amounted to US$7.2 trillion, including US$1.7 trillion in custody and custody accounts and US$5.5 trillion in trust accounts.

Association with Trump brings the charter into focus

World Liberty Financial's relationship with U.S. President Donald Trump and his family has made the application a focus of Congress. Trump and members of the Witkoff family helped start the company in 2024, and Trump later adopted the title of Founding Chairman Honorary. Senator Elizabeth Warren in January asked OCC Administrator Jonathan Gould to suspend the review of the charter until Trump divested his financial interest in the company. Warren said approval could lead to the supervision of businesses with financial ties to the president by someone appointed by the president. Doubts increased further after reports emerged that Abu Dhabi affiliated entities bought a 49% interest in World Liberty Financial for US$500 million shortly before Trump returned to the White House. In June, Senate Democrats questioned the deal's potential national security impact and its impact on charter review.

The OCC said it received public comments about non-U.S. investors in World Liberty Financial. According to its decision, these foreign investors are not considered major shareholders in the proposed bank, and multiple investors have signed agreements promising not to control or influence its operations. Eric Trump signed one of the agreements as president of the Trump Family Related Investment Vehicle. Regulators said Gould and its agency staff complied with legal and ethical obligations, while career employees handled applications for review, and non-politically appointed inspectors would oversee the bank.

After the news was announced, WLFI initially rose more than 2% to about US$0.0597, before giving up some of the gains. TradingView data shows that the token then approached $0.0558, up about 8% in the past seven days, but down more than 65% from a year ago.