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

On August 14, U.S. national bank regulator, the Office of the Comptroller of the Currency (OCC), issued a conditional preliminary approval for World Liberty Trust Company's application for a national trust charter. This approval would enable World Liberty to manage and hold customer assets and expedite payments, although it would not engage in deposit-taking or lending like traditional banks.

The authorization does not generally permit deposit-taking or lending, unlike conventional banks. The approval comes as part of a broader push by crypto companies to leverage the Trump administration's favorable stance towards cryptocurrencies. The charter would allow World Liberty to issue its USD1 stablecoin and custody U.S. dollar assets, functions currently managed by BitGo, a business partner.

The approval is subject to conditions, including notifying the regulator of any significant business plan changes and maintaining a minimum capital of $20 million. World Liberty, deeply connected to the Trump family through the Witkoff family, has garnered significant attention given its ties to the administration and the potential national security implications of its stake purchases.