Trump-Backed World Liberty Secures Preliminary Approval for Federally Supervised Bank

World Liberty Financial, a Trump-backed cryptocurrency venture, has secured preliminary conditional approval from the Office of the Comptroller of the Currency (OCC) to establish a federally supervised financial institution in the United States. The OCC granted preliminary conditional approval on Friday to World Liberty Trust Company, National Association, advancing the company's application for a national trust bank charter.

The proposed trust bank would allow World Liberty to bring important functions surrounding its dollar-pegged stablecoin, USD1, under a federally supervised structure. Those activities include issuing and redeeming USD1, managing reserves backing the token, and providing digital asset custody services for institutional customers.

World Liberty has indicated that its target customers include market makers, cryptocurrency exchanges, investment firms, and other financial businesses seeking regulated digital asset infrastructure. The company's application states that USD1 is designed to maintain a 1-to-1 equivalence with the U.S. dollar.

The approval, however, is not yet a final banking authorization. World Liberty Trust must satisfy additional conditions and requirements before it can receive final approval and begin operating under the proposed national trust bank charter.