OCC clears World Liberty trust bank proposal

The Office of the Comptroller of the Currency has granted preliminary conditional approval for World Liberty Trust Company, National Association, a proposed national trust bank sponsored by World Liberty Financial. This authorization is an initial step and does not allow the bank to begin operations until all supervisory and preopening conditions are met.

World Liberty Trust Company would be headquartered in Bay Harbor Islands, Florida. As structured, it would operate as a national trust bank, which generally does not take federally insured deposits or function as a full-service deposit-taking and lending institution.

If ultimately authorized to open, the trust bank plans to issue and redeem USD1, a dollar-pegged stablecoin associated with World Liberty Financial. The institution is also expected to assume issuance and custody responsibilities for USD1 that are currently handled by BitGo.

By moving issuance and reserve custody functions into a national trust bank framework, the structure would place key operational elements of the stablecoin within a federally supervised chartered entity. This planned shift is contingent on the bank satisfying all regulatory conditions tied to its preliminary approval.

The OCC’s conditional approval requires World Liberty Trust Company to maintain at least $20 million in capital. This minimum capital requirement is part of a broader set of preopening conditions the organizers must meet before the bank can commence business.

These conditions reflect the regulator’s oversight of the proposed stablecoin-focused trust bank, including expectations around financial resilience and adherence to supervisory standards. Failure to meet these requirements would prevent the institution from moving beyond the preliminary stage.

Organizers’ materials identify Zachary Witkoff as an organizer and director of World Liberty Trust Company, as well as the proposed president and chairman. His role places him at the center of governance planning for the new trust bank as it proceeds through the chartering process.

The OCC noted it had received public comments raising concerns about potential conflicts of interest and the presence of non-U.S. investors in World Liberty Financial. In its review, the agency stated that these investors were not treated as principal shareholders for charter purposes.

Regulators also cited passivity agreements signed by several investors as part of addressing ownership and control concerns. These agreements are intended to limit certain types of influence or control by those investors as the trust bank advances through the chartering process.