Overview
- The Office of the Comptroller of the Currency gave World Liberty Trust Company preliminary conditional approval for a national trust bank charter on Friday, allowing the trust to seek federal authority to issue and redeem the USD1 stablecoin once conditions are met.
- The OCC letter sets specific preopening requirements, including at least $20 million in capital with half held in liquid assets plus a qualified internal audit manager and other governance steps before the trust may open.
- If finalized, World Liberty Trust would take stablecoin issuance and custody of USD1 from BitGo and operate as a limited-purpose national trust bank that does not plan to accept FDIC-insured deposits or seek a Federal Reserve master account.
- Democratic lawmakers led by Senator Elizabeth Warren immediately challenged the approval as a conflict of interest and introduced legislation to bar regulators from approving banks owned or controlled by the president or close officials, while the OCC said career staff reviewed the application under its procedures.
- The decision follows a broader push by the OCC to grant national trust charters to crypto firms and could boost USD1’s appeal to institutional clients if final approval and ongoing supervision secure market trust, but it also sets up sustained regulatory scrutiny and congressional fights.