Trump Admin Grants Bank Charter to WLFI, the Crypto Company 38% Owned by His Family

A cryptocurrency firm 38 per cent owned by an entity linked to Donald Trump and members of his family has secured preliminary approval from the Trump administration to set up a federally chartered bank.

The Office of the Comptroller of the Currency (OCC), the Treasury agency that oversees national bank charters, granted conditional approval on 14 August for World Liberty Trust Company to establish itself as a national trust bank, subject to capital, operational and regulatory requirements that must be met before the charter becomes final.

World Liberty Financial, the Trump-linked crypto venture connected to the proposed bank, is 38 per cent owned by an entity affiliated with Trump and certain family members, according to the company's disclosures. The venture was founded in 2024 by members of the Trump and Witkoff families.

The OCC's decision allows World Liberty Trust to move towards bringing some of the financial infrastructure behind its USD1 stablecoin under its own control. If the charter receives final approval, the proposed bank will be able to issue and redeem USD1, manage its reserves and provide digital asset custody.

Those functions are currently handled by BitGo. The OCC said the proposed bank intends to acquire USD1 reserve assets and associated liabilities from BitGo after it is established.

Conditional Charter and Strict Operating Limits

The decision does not give World Liberty Trust the same powers as a conventional retail bank.

The OCC said the institution will operate as an uninsured national trust bank and will not take traditional deposits or make commercial loans.

It has also committed not to become a bank under the Bank Holding Company Act.

Before the institution can open, it must meet conditions imposed by the OCC. These include maintaining at least $20 million in Tier 1 capital, with at least 50 per cent of that capital, or $10 million, whichever is greater, held in eligible liquid assets.

The bank must also obtain regulatory approval for significant changes to its business plan during its organisation period and first three years of operation. Its stablecoin activities must comply with the GENIUS Act and any implementing regulations.

The OCC said its approval followed a review by career staff and addressed concerns raised during the application process, including potential conflicts of interest involving Trump, his family, the Witkoff family and foreign investors in World Liberty Financial.

'The Comptroller and staff acted consistently with their statutory duties and ethical obligations with respect to the Application,' the OCC said. It added that career staff reviewed the application against statutory, regulatory and policy requirements.

Trump Family Ties Under Political Fire

World Liberty Financial is closely associated with the Trump family. Trump and his sons have promoted the company's crypto activities, while Zach Witkoff, son of Trump's special envoy to the Middle East, Steve Witkoff, serves as chief executive of World Liberty Financial and is also president and chairman of the proposed trust bank.

Democratic lawmakers have questioned whether the relationship creates a conflict of interest because the OCC is part of the Treasury Department and its comptroller, Jonathan Gould, was appointed by Trump.

The OCC said approvals of this type are made under authority delegated to career staff rather than personally by the comptroller. It also said the agency's examiners responsible for supervising the bank would be non-political career officials.

Senator Elizabeth Warren has criticised the decision as a 'brazen act of self-dealing'. Other Democratic senators have proposed legislation that would restrict presidents, vice presidents and their family members from owning or controlling banks.

World Liberty has defended the structure, saying its proposed national charter would provide 'robust and permanent regulatory supervision from the OCC' and that firewalls are intended to prevent the Trump family from participating in the bank's operations while Trump is president.

USD1 Stablecoin Edges Towards In-House Banking

The charter would give World Liberty a larger role in the infrastructure supporting USD1, its dollar-backed stablecoin.

USD1 has grown rapidly since its launch in 2025 and had a market capitalisation of about $4 billion by August, making it one of the largest stablecoins. It is estimated that the Trump family had earned about $50 million from USD1 through June 2026.

The OCC's decision moves World Liberty closer to controlling the issuance, custody and reserve management of a multibillion-dollar stablecoin through its own federally supervised trust bank. Final approval remains subject to the OCC's conditions being satisfied before World Liberty Trust can begin operating.