Crypto bank part-owned by Trump family offers depositors way to ‘gain favor’ with White House, experts say

Two key aspects drive the business model of World Liberty Financial Trust Company, a new crypto bank partly owned by the Trump family. Firstly, the risk of the company losing money is minimal according to cryptocurrency experts. Secondly, depositors are motivated by the possibility of gaining favor with the White House and establishing financial connections to a US president and his relatives.

The bank, which received conditional approval from the US Office of the Comptroller of the Currency (OCC), is set to launch soon. However, it will not operate as a conventional bank, as it won't offer traditional banking services or federal deposit insurance. Instead, World Liberty will issue a dollar-pegged stablecoin, USD1, which is used primarily to buy and sell riskier cryptocurrencies.

As stablecoins are regulated under a law signed by Trump in 2025, the bank won't pay interest to depositors. Instead, the company can earn interest by investing the deposited funds into high-quality liquid assets such as US government-backed treasury bonds. Experts suggest that the primary reason for depositors to invest in the Trump family's stablecoins is to gain favor with the White House and potentially help Trump for various reasons.

World Liberty maintains that the bank's approval signifies robust regulatory oversight, while Democrats argue it is a clear case of corruption, highlighting the unprecedented situation where a US president has an interest in a bank his administration will approve and regulate.