U.S. President Donald Trump’s family-affiliated cryptocurrency company, World Liberty Financial (WLF), has once again gained attention as it integrates further into the American banking system.
According to the letter dated the 14th of August, World Liberty Trust Company has received conditional approval for a national trust bank charter from the Office of the Comptroller of the Currency (OCC), the federal regulator in the United States in charge of overseeing national banks.
Eligibility criteria for final approval
However, this does not yet constitute final approval to function as a fully functional national trust bank. This is because WLF needs to adhere to regulations that include hiring a qualified internal audit manager, keeping at least $20 million in capital, and informing the OCC of significant changes to the business plan.
The letter noted,
This preliminary conditional approval is granted based on a thorough evaluation of all information available to the OCC, including the representations and commitments made in the application and by the Bank’s representatives.
It added,
Final approval won’t be granted until the company meets additional “preopening requirements.
What does this mean for WLF and its stablecoin?
Interestingly, rather than a conventional commercial banking license, World Liberty is aiming for a national trust bank charter. As a result, it would be able to hold and manage client assets, offer custody services, control reserves, and help with settlements—all without typically accepting deposits or making conventional loan payments.
In the case of USD1, World Liberty’s dollar-backed stablecoin, the charter may be particularly significant. If approved, World Liberty Trust would lessen its dependency on partners like BitGo by consolidating USD1 issuance, custody, and reserve management under a single federally supervised organization.
Additionally, by offering a recognizable regulatory framework for custody and settlement, a national charter might increase USD1’s attractiveness to institutional clients.
Criticism keeps growing
However, due to World Liberty’s close ties to Trump and his family, the move has drawn criticism. As expected, Senator Elizabeth Warren of Massachusetts, who had previously urged the OCC not to approve World Liberty’s application unless the president sold his stake in the company, was the primary critic in this case.
In fact, after the OCC approval, Warren argued in a statement,
President Trump is now the first President in history to approve, operate, and supervise his own bank. This is the most brazen act of self-dealing our financial system has ever seen — and Congress cannot allow it to stand.
This coincided with the transfer of 25.729 million WLFI tokens to Gate by WLF, which further sparked worries about persistent distribution.
Furthermore, Trump Media & Technology Group (TMTG), the parent company of Truth Social, has also abandoned its plans to expand its cryptocurrency business, raising further eyebrows.
Final Summary
- World Liberty Trust Company has received conditional approval for a national trust bank charter from the Office of the OCC.
- However, criticism from Sen. Elizabeth Warren against Trump’s crypto ventures is raising eyebrows.