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World Liberty Financial affiliate receives preliminary approval for bank charter
The Office of the Comptroller of the Currency (OCC) has granted conditional preliminary approval to World Liberty Trust Company to establish a national trust bank. The entity is affiliated with World Liberty Financial, a cryptocurrency venture partially owned by Donald Trump and his family members.
If fully approved, the bank would be authorized to issue and manage its own stablecoin, USD1, and provide digital asset custody services. Unlike traditional commercial banks, this trust company will not be permitted to accept deposits or issue loans, and its services will not be covered by FDIC insurance.
The move has drawn significant political scrutiny. Senator Elizabeth Warren and other Democrats have criticized the approval as a potential conflict of interest, labeling it a 'brazen act of self-dealing.' In response, Democratic senators have announced plans to introduce legislation aimed at preventing the president, vice president, or their families from owning or controlling banking institutions.
World Liberty Financial maintains that firewalls have been implemented to ensure the Trump family does not participate in the bank's operations during the president's term. The approval is subject to several conditions, including maintaining a minimum of $20 million in capital and establishing rigorous internal audit and oversight systems.
Entities
Donald Trump · Elizabeth Warren · Office of the Comptroller of the Currency · WLTC Holdings LLC · World Liberty Financial · World Liberty Trust Company · Zach Witkoff
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [○ 1 SOURCE] Senator Elizabeth Warren criticized the move as a 'brazen act of self-dealing' and plans to introduce legislation to prevent the president's family from controlling banks. offthepress.com
- [● 4 SOURCES] The OCC granted conditional preliminary approval to World Liberty Trust Company to establish a national trust bank charter. offthepress.com · crypto-times.jp · www.neweconomy.jp · sapo.pt
- [● 2 SOURCES] The bank will not be permitted to accept deposits or provide loans like a traditional commercial bank. crypto-times.jp · www.neweconomy.jp
- [● 3 SOURCES] The new bank charter would allow the company to issue and manage its own stablecoin, USD1, and provide digital asset custody. crypto-times.jp · www.neweconomy.jp · sapo.pt
- [● 4 SOURCES] World Liberty Financial is 38% owned by an entity affiliated with Donald Trump and his family members. offthepress.com · crypto-times.jp · www.neweconomy.jp · sapo.pt
- [○ 1 SOURCE] Zach Witkoff, the son of Steve Witkoff, is set to serve as the president and chairman of World Liberty Trust Company. www.neweconomy.jp
- [○ 1 SOURCE] Approval is conditional upon meeting requirements such as maintaining at least $20 million in capital and establishing internal audit systems. crypto-times.jp
- [○ 1 SOURCE] World Liberty Financial claims that firewalls have been established to prevent the Trump family from participating in the bank's operations while Donald Trump is in office. offthepress.com