Trump Family-Backed Stablecoin Bank Raises National Security Concerns
The Office of the Comptroller of the Currency (OCC) has cleared World Liberty Trust Company to issue and redeem USD1, a stablecoin backed by a $4.1 billion market value. The bank is owned by WLTC Holdings, a Delaware company with a shareholder split mirroring that of World Liberty Financial, the Trump family crypto venture behind the coin.
An entity tied to Sheikh Tahnoon bin Zayed al Nahyan, who runs the United Arab Emirates' national security service and is the brother of its president, holds 49% of WLTC Holdings. A Trump family entity owns 38%. The OCC's public decision does not list these figures, but people familiar with the matter confirm them.
The bank needs about $1 of its own capital for every $205 of USD1 outstanding, raising concerns about the stability of the coin. World Liberty has estimated that it throws off roughly $155 million a year in interest, which is currently held by BitGo but will soon be taken over by the new bank.
The OCC collected passivity commitments from three entities, including DT Marks SC LLC signed by Eric F. Trump as president, and AMGUS LLC signed by co-founder Zachary Folkman. These commitments promise no board seats or influence over dividends, pricing, personnel, or operations.