Trump-Backed Crypto Bank Approved, Sparks Corruption Concerns

The World Liberty Trust Company, partly owned by the Trump family, has received conditional approval from the US Office of the Comptroller of the Currency (OCC) to start a bank. This new crypto bank won't lend money or issue credit cards, but it will directly issue the Trumps' dollar-pegged stablecoin, USD1.

Experts say that the only logical motivation for depositors to put their money into this bank is its connection to the president and his family. World Liberty Financial, the entity affiliated with Donald Trump and his family members, owns about 38% of the company.

The OCC is led by a political appointee of the US President. James Angel, an associate professor at Georgetown University's McDonough School of Business, said that depositors are interested in buying USD1 because they want to appease Trump or gain favor with him.