Trump Crypto Empire Faces Scrutiny Over 49% Saudi Linked Stake in New Bank

Trump-linked crypto venture company, World Liberty Financial, is preparing to launch a federally chartered national trust bank after the Office of the Comptroller of the Currency granted preliminary conditional approval earlier this month. An entity linked to Sheikh Tahnoon bin Zayed al Nahyan and co-investors reportedly owns 49% of the holding company, the largest stake in that structure.

The proposed bank is intended to issue, redeem, and safeguard USD1, the dollar-backed stablecoin World Liberty launched last year. The venture links World Liberty's stablecoin business to a proposed federally chartered trust bank.

The OCC's action is preliminary and conditional rather than a final banking charter. According to the Journal, the approval concerns World Liberty Financial's plan to launch a federally chartered national trust bank.

The proposed bank's stated functions are to issue, redeem, and safeguard USD1. The conditional approval does not amount to a final charter.

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Trump Crypto Bank and The 49% Stake

Sheikh Tahnoon bin Zayed al Nahyan and co-investors are behind an entity that owns the largest stake, 49%, in World Liberty's banking holding company, according to people familiar with the matter who spoke to the Journal. The Journal previously reported that Tahnoon backed a $500 million investment in World Liberty Financial last year in exchange for a 49% stake in the company.