The U.S. crypto industry has taken another significant step toward integration with the traditional financial system after the Office of the Comptroller of the Currency (OCC) granted preliminary conditional approval to World Liberty Trust Company, a proposed national trust bank connected to the Trump-backed World Liberty Financial ecosystem.
The OCC issued its decision on August 14, clearing a path for World Liberty Trust to issue and redeem the USD1 stablecoin, manage its reserves and provide digital-asset custody services under federal supervision. The approval is conditional, however, and does not yet allow the proposed bank to begin operations.
The decision is important not only for World Liberty but also for the rapidly expanding U.S. stablecoin sector. If the bank receives final authorization, USD1 would move from being issued and managed through an external banking partner to being handled directly by a federally supervised entity.
World Liberty Trust is being designed very differently from a conventional commercial bank.
The proposed institution will not operate a nationwide network of branches, take ordinary consumer deposits or make traditional loans. Instead, its business model is centered on three areas: issuing and redeeming dollar-backed stablecoins, maintaining stablecoin reserves and providing fiduciary digital-asset custody services.
The OCC’s approval letter specifically states that World Liberty Trust would take over USD1 issuance and reserve management from BitGo Bank & Trust, which currently serves as the stablecoin’s issuer and custodian. The proposed bank would also provide custody and conversion services for institutional customers.
That structure could give USD1 a stronger regulatory foundation as competition in the stablecoin market intensifies.
USD1 has already grown rapidly. World Liberty said the stablecoin had more than $4 billion in circulation by August, making it one of the largest dollar-pegged tokens in the market.
Despite the headlines describing the move as a bank approval, an important distinction remains.
The OCC granted preliminary conditional approval, not final authorization. World Liberty Trust must satisfy a series of pre-opening requirements before it can commence business. The regulator also retains the authority to modify, suspend or rescind the approval if circumstances change.
Among the conditions is a requirement to maintain at least $20 million in Tier 1 capital. At least $10 million, or 50% of Tier 1 capital if higher, must be held in eligible liquid assets. The proposed bank must also maintain reserves sufficient to cover 180 days of operating expenses.
These requirements are intended to ensure that the institution can operate safely before receiving final authorization.
The regulatory decision is particularly controversial because of World Liberty’s connection to President Donald Trump and his family.
World Liberty Financial was founded in 2024 by Trump family members and their business partners. The Trump family reportedly owns a 38% stake in the venture, while foreign investors, including an investment firm from the United Arab Emirates, also hold a significant interest.
That ownership structure has already attracted criticism from Democratic lawmakers and financial-policy groups, who argue that granting a national trust charter to a company linked to the president creates potential conflicts of interest.
Senator Elizabeth Warren has been among the most vocal critics, questioning whether the OCC can independently supervise a financial institution connected to the sitting president’s family. The OCC, however, proceeded with the conditional approval after reviewing the application and associated ownership arrangements.
World Liberty executives have framed the development differently, arguing that federal supervision will strengthen confidence in USD1 by placing its issuance, custody and reserve management within a regulated banking structure.
The broader significance of the approval may extend well beyond USD1.
The OCC has increasingly signaled openness to bringing crypto-native financial businesses into the regulated banking system. Other major digital-asset companies have also pursued bank or trust-charter structures, reflecting a broader shift from the earlier model of crypto operating largely outside traditional financial institutions.
For stablecoins, that transition could be particularly important.
As stablecoin supply grows, regulators are increasingly focused on the quality of reserves, redemption mechanisms, custody and operational controls. A federally supervised trust bank could potentially provide institutional users with greater confidence that stablecoin reserves and redemption processes are subject to regular regulatory scrutiny.
For World Liberty, meanwhile, the approval could transform USD1 from a fast-growing crypto product into a more deeply integrated component of the U.S. financial system.
But the next step remains crucial. World Liberty Trust still needs to satisfy the OCC’s pre-opening conditions and receive final approval before it can operate.
If that happens, the Trump-backed venture will have achieved something few crypto companies have managed: a federally supervised banking structure built specifically around stablecoins and digital assets.
The development underscores how quickly the relationship between Washington and crypto is changing — and suggests that the next phase of the U.S. digital-asset industry may be defined not by separation from traditional finance, but by its increasingly direct integration with it.