OCC conditionally approves World Liberty Trust to issue USD1

The Office of the Comptroller of the Currency granted preliminary conditional approval on Aug. 14, 2026 for World Liberty Trust Company, National Association, of Bay Harbor Islands, Florida, to issue and redeem the USD1 stablecoin under federal supervision. If finalized, the trust bank would assume reserve management, issuance and custody functions now handled by BitGo Bank & Trust.

World Liberty filed its national trust charter application in January 2026. A national trust charter is narrower than a commercial bank charter: it does not permit deposit-taking or conventional lending but authorizes custody, asset servicing and settlement activities. Under the proposed charter, World Liberty Trust would issue and redeem USD1 for institutional clients, hold the assets backing the token and act as fiduciary custodian for digital assets used by exchanges and investment firms.

The OCC attached several preconditions to the approval. The bank must maintain at least $20 million in capital, with at least half held in liquid assets, meet the requirements listed in the approval letter and complete pre-opening steps before beginning operations. The agency said it retains authority to modify, suspend or rescind the approval if conditions change or are not met.

USD1 launched in March 2025 and has about $4 billion in market capitalization, making it the fourth-largest dollar-denominated stablecoin. Its reserve consists of U.S. dollars on deposit at financial institutions, U.S. government money market funds and cash equivalents. Distribution of the token is concentrated on centralized exchanges and on decentralized venues. World Liberty has indicated the trust bank would serve exchanges, investment firms and other institutional customers rather than retail users.

Governance details published with the OCC notice describe a five-member board combining company founders with independent directors experienced in accounting, regulation and finance. Mack McCain is listed as Chief Trust Officer and Daniel Dietzel, formerly chief financial officer at Hidden Road, is listed as Chief Financial Officer.

The application prompted political scrutiny. World Liberty Financial’s public filings show a 38% ownership stake by an entity affiliated with Donald J. Trump and certain family members. Democratic lawmakers raised questions about whether regulators appointed by the president could review the application impartially, and the advocacy group Americans for Financial Reform alleged the process was rushed. The OCC responded that career staff conducted the review, that Comptroller Jonathan Gould and agency personnel acted in line with statutory and ethical obligations, and that federal banking law and the GENIUS Act permit uninsured national banks to issue stablecoins.

Regulatory work implementing the GENIUS Act remains incomplete. Several other firms have pursued national trust charters or similar approvals while regulators continue to develop implementing rules. World Liberty must satisfy the OCC’s preconditions and complete pre-opening requirements before it can begin issuing USD1 under the national trust charter.

In a company statement, Zach Witkoff, president and chairman of World Liberty Trust Company, welcomed ongoing scrutiny from federal regulators.