Trump crypto venture wins conditional US bank charter approval

Donald Trump-backed cryptocurrency venture World Liberty Financial received conditional approval for a national trust bank charter from the US Office of the Comptroller of the Currency on Friday, 14 August, allowing it to bring key stablecoin operations in-house as the president’s crypto interests face growing political scrutiny.

The charter was granted to World Liberty Trust Company, which is sponsored by World Liberty Financial and would be able to issue its USD1 stablecoin, manage its reserves and provide digital asset custody services. The institution would not be permitted to accept traditional deposits or make loans.

Reuters reported that the approval remains subject to conditions including maintaining at least $20 million in capital, notifying the regulator of significant changes to its business plan and appointing a qualified internal audit manager. The charter would allow the company to operate nationally under federal supervision rather than relying on individual state regulators.

World Liberty Financial was established in late 2024 by Trump’s three sons, Eric, Donald Trump Jr and Barron Trump, alongside members of the family of Steve Witkoff, Trump’s special envoy for peace negotiations. Trump is listed as co-founder emeritus, while an entity affiliated with Trump and members of his family owns about 38 per cent of the holding company, according to the company’s website.

The approval has drawn criticism from Democrats and government ethics advocates because of Trump’s financial interests in the venture. Citizens for Responsibility and Ethics in Washington chief executive Donald Sherman called the decision “the most egregious example to date of the President’s businesses profiting from his government job”, while Senator Elizabeth Warren said Trump was “now the first President in history to approve, operate, and supervise his own bank”.

World Liberty has rejected conflict-of-interest allegations, saying Trump is not involved in managing the company and that none of its leaders or employees work for the federal government. The OCC said its application was reviewed by career staff and that its comptroller, Jonathan Gould, and agency staff had acted consistently with their statutory duties and ethical obligations.

Zach Witkoff, president and chairman of World Liberty Trust, said the charter would bring “USD1 issuance, custody, and reserve management together under OCC supervision”. He added that the company welcomed continued scrutiny from federal regulators as it works towards opening the bank.

USD1 has grown rapidly since its launch in March 2025 and had around $4 billion in circulation by 14 August, making it the fourth-largest stablecoin by market capitalisation, according to Reuters. Reuters estimated that the Trump family had earned about $50 million from USD1 by the end of June, while its broader calculations put total payments to Trump and his family from World Liberty Financial at more than $1.6 billion by April.

The OCC has granted preliminary approval to several other crypto-related institutions under Gould, including Ripple and Circle, as the regulator encourages new entrants to seek banking charters. The agency said it received 40 charter applications from 2025 onwards, a sharp increase from the previous administration.