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The Office of the Comptroller of the Currency has granted preliminary conditional approval for World Liberty Financial-linked World Liberty Trust Company to establish a national trust bank in Bay Harbor Islands, Florida. The decision was issued August 14.
The proposed bank would bring issuance, redemption, and reserve management for World Liberty’s USD1 stablecoin under OCC supervision while adding digital asset custody services. Final approval is still required before the trust company can begin operating.
World Liberty Trust Plans to Take USD1 Issuance From BitGo
World Liberty Trust plans to issue USD1 to institutional clients nationwide, maintain stablecoin reserves and provide digital asset custody in a fiduciary capacity. It would also offer conversion services allowing custody customers to exchange approved stablecoins for USD1.
BitGo currently serves as USD1’s exclusive issuer and custodian. After opening, World Liberty Trust plans to acquire the stablecoin’s reserve assets and associated liabilities from BitGo and assume responsibility for issuance.
The charter would not make World Liberty Trust a conventional commercial bank. The OCC requires it to limit operations to trust-company activities and not become a “bank” under the Bank Holding Company Act.
OCC Requires $20M Tier 1 Capital and 180 Days of Liquidity
World Liberty Trust must maintain at least $20 million in Tier 1 capital. The greater of 50% of its Tier 1 capital or $10 million must be held in eligible liquid assets.
The bank must separately maintain eligible liquid assets covering 180 days of operating expenses. Material changes to its business plan also require 60 days’ notice and written OCC non-objection during its first three years of operation.
Its stablecoin activities must conform to the GENIUS Act and future implementing regulations, with the OCC requiring activities to be changed, stopped or divested if necessary for compliance.
Final Approval Required Before World Liberty Trust Can Open
The OCC received seven comments from four commenters, including objections involving disclosure, foreign investment and potential conflicts of interest. The regulator said career staff reviewed the application and obtained passivity commitments from certain U.S. and non-U.S. investors.
The OCC said the Comptroller and staff acted consistently with their statutory and ethical obligations. It also said concerns involving some WLFI token purchases and foreign investors fell outside the charter review because those parties were not applicants for the bank charter.
World Liberty Trust cannot begin business until it completes its pre-opening requirements and receives final OCC authorization. The preliminary approval expires if its capital is not raised within 12 months or the bank does not open within 18 months.
