What to know:
- World Liberty Financial is expected to receive approval for an OCC trust charter.
- Federal approval would expand USD1 stablecoin custody and settlement services.
- Lawmakers continue examining Trump’s ties and potential conflict concerns.
World Liberty Financial is expected to receive approval for a national trust bank charter, a move that could expand the company’s role in the U.S. digital asset sector. According to a report from NOTUS, the Office of the Comptroller of the Currency is preparing to announce its decision on the application in the coming days.
Former OCC officials cited in the report suggested that approval is highly likely. One former staff member reportedly described a rejection as “inconceivable,” indicating strong expectations that the application would move forward.
A federal trust bank charter would give World Liberty greater control over its operations. The company would be able to issue and redeem its USD1 stablecoin directly while managing reserves under federal oversight. Additionally, it could provide digital asset custody and settlement services without relying on multiple regulators.
World Liberty established a U.S. trust company in January before filing its application with the OCC. The move followed conditional approvals granted to several crypto firms, including Circle, Ripple, and BitGo.
Currently, BitGo serves as an intermediary for some of World Liberty’s stablecoin functions. However, approval would allow the company to handle those activities directly. Consequently, the charter could improve its appeal to institutions seeking regulated crypto services.
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Federal Charter Could Expand World Liberty’s Operations
The trust bank charter would place World Liberty under a single federal regulator rather than a patchwork of state requirements. As a result, the company could streamline compliance procedures and simplify the issuance of stablecoins.
Moreover, direct control over USD1 operations could strengthen the firm’s position in the growing stablecoin market. The approval would also allow the company to provide custody and settlement services through one regulated entity.
The expected approval has also renewed debate over President Donald Trump’s connection to the company. Trump and his family helped establish World Liberty before the 2024 presidential election.
The company disclosures show that 75% of proceeds from WLFI token sales flow to DT Marks DEFI LLC, a Trump-linked entity. Reuters reported on June 9 that the Trump family generated more than $2.3 billion from four crypto ventures since the beginning of Trump’s second term. World Liberty reportedly accounted for the largest portion of those earnings.
Earlier this year, members of the House of Representatives launched an inquiry into World Liberty’s USD1 stablecoin activities. The review examined potential conflicts of interest and national security concerns linked to the project. Lawmakers also reviewed reports involving a $500 million investment from the United Arab Emirates and a related $2 billion Binance transaction connected to the company.
Warren Questions OCC Review Process
Questions surrounding the application emerged during a February Senate Banking Committee hearing. Senator Elizabeth Warren pressed OCC nominee Jonathan Gould on whether the agency should approve the charter.
Gould responded that regulators would review the application according to existing legal standards. He also stated that political pressure regarding the matter had come from lawmakers rather than the White House.
Meanwhile, White House officials continue to reject allegations of conflicts of interest. They maintain that Trump’s assets are held in a trust managed by his children and argue that no conflict exists.
The OCC’s upcoming decision could mark a significant milestone for World Liberty Financial. At the same time, the approval process continues to attract scrutiny from lawmakers examining the relationship between politics, regulation, and the expanding digital asset industry.
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