The Office of the Comptroller of the Currency (OCC) has issued a preliminary conditional approval to World Liberty Financial to form a national trust bank. The bank will focus on issuing and managing its own stablecoin, USD1, with Zach Witkoff serving as CEO and Chairman. Witkoff co-founded World Liberty Financial with the three sons of U.S. President Donald Trump—Eric Trump, Donald Trump Jr., and Barron Trump.

When the application was submitted in January of this year, President Trump was listed as World Liberty's "co-founder emeritus."

In a written statement, Witkoff said: "The credibility of a stablecoin depends on the strength of its underlying reserves and who is accountable for them. The national trust bank places the issuance, custody, and reserve management of USD1 under OCC oversight and subjects it to examinations under the same standards that have governed banks for decades. We welcome continued federal regulatory oversight in the years ahead."

Lawmakers and industry groups have previously criticized crypto firms, including World Liberty, for obtaining bank charters, arguing that such practices "expose the broader financial system to the extreme volatility, fraud, and money laundering risks inherent in the crypto market."

Given World Liberty's ties to the President and his family, the company has faced intense scrutiny. Senator Elizabeth Warren (D-Mass.) said at a hearing in February to Comptroller of the Currency Jonathan Gould: "If you follow the law, you should reject the President's application. Once you approve it—and we all know you will—you go from being President Trump's cheerleader to his corrupt accomplice."

According to Reuters, citing information on the company's website, the Trump family holds a 38% stake in World Liberty. Another 49% is held by an investment company based in the United Arab Emirates, as disclosed by The Wall Street Journal in January. Warren, as the senior member of the Senate Banking Committee, pressed Gould on the UAE company's stake, asking whether World Liberty had disclosed the UAE firm as a major shareholder of the proposed trust bank in its charter application. Gould declined to discuss details of the application.

Patrick Woodall, managing director of Americans for Financial Reform Education Fund, said last Friday: "Granting a bank charter to the First Family's crypto company poses unprecedented risks because it creates an insurmountable conflict of interest—starting with the OCC's inability to deny WLF's charter application." Woodall added in a statement that the OCC under the Trump administration "cannot credibly or impartially supervise or examine the Trump family's crypto bank, ensure its safe and sound operations, maintain adequate reserves for the Trump stablecoin, or protect customers from unfair or deceptive practices."

World Liberty Trust's stablecoin USD1 has surpassed $4 billion in circulation, the company said last Friday. Once operational, World Liberty Trust will handle the issuance and redemption of USD1, manage the reserves backing USD1, and provide digital asset custody services for institutional clients.

The bank will be governed by a five-member board of directors, including: Witkoff; Scott Alper, president and chief investment officer of the Witkoff Group; Robert Witkoff, former co-chief investment officer of insurer Chubb Co.; Jeffrey Weiner, former CEO of accounting firm Marcum LLP; and Erin Baskett, a member of the Financial Industry Regulatory Authority (FINRA) board.

Before commencing operations, World Liberty Trust must satisfy specific conditions outlined in the OCC's approval letter. Among them, World Liberty Trust must maintain at least $20 million in Tier 1 capital, with at least half—i.e., $10 million, whichever is higher—held in qualifying liquid assets. The bank must also maintain a reserve equivalent to 180 days of operating expenses.