Trump-Linked Crypto Firm Secures Preliminary Approval for Federally Chartered Bank
A cryptocurrency firm tied to Donald Trump's family has secured preliminary approval from the Trump administration to set up a federally chartered bank. World Liberty Trust Company, which is 38% owned by an entity affiliated with Trump and his family members, was granted conditional approval by the Office of the Comptroller of the Currency (OCC) on August 14.
The proposed national trust bank will operate as an uninsured institution, not taking traditional deposits or making commercial loans. It must meet conditions imposed by the OCC before opening, including maintaining at least $20 million in Tier 1 capital and obtaining regulatory approval for significant changes to its business plan during its organisation period and first three years of operation.
The charter would give World Liberty a larger role in the infrastructure supporting USD1, its dollar-backed stablecoin. The Trump family has reportedly earned about $50 million from USD1 through June 2026.
Democratic lawmakers have questioned whether the relationship between Trump's family and the OCC creates a conflict of interest. Senator Elizabeth Warren has criticised the decision as a 'brazen act of self-dealing', while other Democratic senators have proposed legislation to restrict presidents, vice presidents, and their family members from owning or controlling banks.