Short answer: On August 14, 2026, the Office of the Comptroller of the Currency (OCC) granted World Liberty Financial preliminary conditional approval to set up World Liberty Trust Company, N.A., a national trust bank that would issue the USD1 stablecoin and hold its reserves. The Trump family-linked company would take over that role from BitGo once it meets the OCC's pre-opening conditions. Democratic senators called the decision a conflict of interest.
What happened
The OCC is the U.S. federal regulator that charters and supervises national banks. World Liberty applied for a national trust bank charter in January 2026. The preliminary conditional approval announced on August 14 lets it move towards opening, but the bank cannot start operating until it meets further pre-opening requirements.
- Entity: World Liberty Trust Company, National Association, sponsored by WLTC Holdings LLC.
- Business: issuing and redeeming USD1, managing the reserves behind it, and providing digital asset custody, mainly to USD1 customers and institutional clients.
- Change of issuer: USD1 is currently issued and held exclusively by BitGo Bank & Trust, N.A. The new bank would take over that role.
- Leadership: Zach Witkoff, president and chair, said federal supervision would strengthen institutional trust in USD1.
USD1 is a dollar-pegged stablecoin with more than $4 billion in circulation. According to the company, it is backed by U.S. dollar deposits, government money market funds and cash equivalents, and it trades on major venues including Binance, Coinbase and Kraken.
What a national trust charter allows, and what it does not
A trust charter is narrower than a full banking licence. The difference matters for anyone who holds USD1.
| Allowed under the charter | Not included |
|---|---|
| Issuing and redeeming USD1 | Federal deposit insurance (FDIC) |
| Holding and managing stablecoin reserves | Access to a Federal Reserve master account |
| Fiduciary custody of digital assets under OCC supervision | Oversight under the Bank Holding Company Act |
In practice this is the same route other crypto firms have taken. In December 2025 the OCC conditionally approved national trust charters for several crypto companies, including Circle, Ripple and BitGo. Under the GENIUS Act, the federal stablecoin law signed in July 2025, an OCC-chartered entity can act as a regulated issuer of payment stablecoins.
Why the World Liberty charter is controversial
World Liberty is not an ordinary applicant. President Donald Trump and his sons are affiliated with the company, and a Trump family entity reportedly holds about 38% of its equity. Cointelegraph reports that an Abu Dhabi investment firm linked to Sheikh Tahnoon bin Zayed Al Nahyan bought a large stake in early 2025. USD1 was also used in a $2 billion investment by the UAE's MGX in Binance.
The OCC is part of the Treasury Department, and its head, Comptroller Jonathan Gould, was appointed by the president. Critics argue that a regulator run by a presidential appointee should not grant a charter to a business the president profits from.
- Senator Elizabeth Warren called the approval "the most brazen act of self-dealing" in the financial system's history and accused the OCC of approving unqualified crypto banks.
- Senators Angela Alsobrooks and Ruben Gallego said they would introduce an Ending Presidential Corruption in Banking Act to block similar approvals.
- Americans for Financial Reform, a consumer group, publicly condemned the decision on the same day.
Supporters argue that the OCC applied the same framework it used for other crypto firms, and that federal supervision of a stablecoin already in circulation is better than none.
What it means for you
- USD1 is not changing yet. Until the bank opens, BitGo remains the issuer and custodian. Watch for official notices about the transition before you move large balances.
- A regulated issuer is not insured. OCC supervision adds reserve and governance rules, but USD1 holders would still have no FDIC protection.
- Political risk is real. A stablecoin tied to a sitting president can face legal and policy challenges when administrations change. Spreading balances across more than one issuer reduces exposure to any one of them. See our explainer on what a stablecoin is.
- Check liquidity before swapping. USD1 is smaller and less liquid than USDT or USDC on many networks, so compare the amount you would actually receive, for example on the pairs page, before choosing a route.
Key takeaways
- The OCC granted World Liberty Financial preliminary conditional approval for a national trust bank on August 14, 2026.
- World Liberty Trust Company would issue USD1, which has more than $4 billion in circulation, and hold its reserves, taking over from BitGo.
- The charter does not include FDIC insurance or a Federal Reserve master account.
- Senator Elizabeth Warren and other Democrats called the approval self-dealing and proposed legislation to block similar approvals.
For a broader view of how custodial and non-custodial services differ in who holds your assets, read our DeFi vs CeFi explainer.
Sources: CoinDesk, World Liberty press release (Business Wire), Cointelegraph, Lowenstein Sandler
Frequently asked questions
Did World Liberty Financial get a bank charter?
It received preliminary conditional approval from the OCC on August 14, 2026, for World Liberty Trust Company, N.A. The trust bank can open only after meeting the OCC's pre-opening requirements.
Who issues the USD1 stablecoin?
USD1 is currently issued and held by BitGo Bank & Trust, N.A. Once World Liberty Trust Company opens, it is expected to take over issuance, redemption and reserve management.
Is USD1 insured by the FDIC?
No. A national trust charter brings OCC supervision but not federal deposit insurance, so USD1 holders rely on the issuer's reserves rather than FDIC protection.
