OCC grants bank charter to Trump-backed World Liberty Financial for expansion

The Office of the Comptroller of the Currency (OCC) conditionally approved a bank charter application for World Liberty Financial, a cryptocurrency venture linked to former President Donald Trump, on August 14. This approval marks a significant step for the company, allowing it to expand its stablecoin operations amid a growing interest in cryptocurrency regulation.

The approval comes at a time when the cryptocurrency industry is seeking more clarity and support from federal regulators. World Liberty Financial applied for the national trust charter in January, hoping to benefit from the crypto-friendly policies established during the Trump administration. If fully approved, the charter will enable World Liberty to manage customer assets and facilitate quicker payment settlements, although it will not allow traditional banking functions like deposit-taking or lending.

The OCC's decision is part of a broader trend, as other crypto firms like Ripple and Circle have received similar preliminary approvals under the leadership of Comptroller Jonathan Gould, appointed by Trump last year. For World Liberty, the charter means it can directly issue its USD1 stablecoin and manage the U.S. dollar assets backing it, rather than relying on a partner like BitGo for those services. The approval was welcomed by the company, which described it as a crucial milestone towards establishing the bank.

The OCC's approval is conditional, requiring World Liberty to maintain at least $20 million in capital and hire a qualified internal audit manager. There were also concerns raised regarding non-U.S. investors in the company, though the OCC determined they would not have controlling interests. Eric Trump, who signed a passivity agreement to ensure no influence over bank operations, represents one of those investors. As the crypto landscape evolves, the approval could pave the way for increased institutional interest and more comprehensive regulatory frameworks.