Trump-Backed Crypto Firm Clears Hurdle for Federally Chartered Bank Status

The Trump family's crypto venture, World Liberty Financial, has received preliminary approval from the Office of the Comptroller of the Currency (OCC) to become a federally chartered bank. This conditional approval is subject to satisfying regulatory conditions and undergoing a final examination before opening for business.

World Liberty Trust, the holding company for World Liberty Financial's stablecoin, USD1, would be able to issue, redeem, and safeguard the dollar-backed stablecoin if ultimately approved. The stablecoin has a market value of approximately $4 billion and was launched last year by Donald Trump and his sons.

The company must still meet certain regulatory requirements before it can operate as a national trust bank. National trust banks generally cannot accept deposits or make loans like traditional banks. World Liberty Financial's application has faced criticism from Democrats over potential conflicts of interest, but the White House has maintained that there are no conflicts.