US regulator approves bank charter for Trump-backed crypto company World Liberty Financial

On August 14, the U.S. Office of the Comptroller of the Currency (OCC) conditionally approved a bank charter request tied to President Donald Trump's crypto venture, World Liberty Financial. This approval would enable the company to expand its stablecoin operations and manage customer assets. The charter, which will be granted at a later date, allows World Liberty Trust Company to handle and hold assets on behalf of clients, without the ability to take deposits or lend like a traditional bank.

The OCC's decision comes as the crypto industry seeks such charters to access nationwide services and attract major institutional clients. World Liberty's USD1 stablecoin, backed by U.S. dollars, has gained significant traction, becoming the fourth-largest stablecoin by market capitalization, valued at approximately $4 billion. The company's leadership is closely linked to Trump allies, with Zach Witkoff, son of Trump's special envoy Steve Witkoff, proposed as president.

Democrats have expressed concerns over potential conflicts of interest, urging the OCC to share unredacted application details, though the public version lacks detailed information on the company's capital structure and business plans. The OCC stated that its staff reviewed the application and will continue to supervise World Liberty under nonpolitical examiners.

The charter is subject to conditions, including regular examinations and maintaining a $20 million capital reserve.