Trump-Linked Crypto Firm Wins Approval to Launch Its Own Bank

Regulators gave preliminary approval for a Trump-family-backed crypto venture to run a special bank for its USD1 stablecoin.

A crypto company backed by President Donald Trump and his family just cleared a big hurdle to run its own bank. On Thursday, a U.S. banking regulator called the OCC (Office of the Comptroller of the Currency, the government agency that oversees national banks) gave preliminary approval to a new institution linked to World Liberty Financial, the Trump family's crypto venture.

The new bank, based in Florida, would be a trust bank — a special type of bank that manages assets for clients but does *not* work like a normal bank. That's an important difference.

What the bank would and wouldn't do:

It would issue and manage USD1, World Liberty's stablecoin (a digital coin designed to always be worth $1, backed by real dollars).
It would offer custody (safe storage) for digital assets on behalf of clients.
It would not take deposits, meaning you can't open a normal savings account there.
It would not have FDIC insurance (the government protection that refunds your money if a bank fails).

Key facts and conditions:

The bank must hold at least $20 million in capital (its own financial cushion).
It must follow the GENIUS Act, a new U.S. law regulating stablecoins.
It has 18 months to actually open its doors.
Zachary Witkoff, a World Liberty co-founder, will serve as director and president.

The approval wasn't without controversy. Critics raised conflict-of-interest concerns because of ties to Trump, his family, and investors from the United Arab Emirates. The OCC largely brushed these aside, saying they fell outside what it reviews. Eric Trump even signed paperwork for one investing entity.

Meanwhile, Senator Elizabeth Warren has argued that these crypto bank approvals are illegal, claiming such firms act like real banks while skipping the safety rules banks must follow.

World Liberty joins a growing wave of crypto companies — including Circle, Ripple, and Paxos — that have won similar charters, signaling how quickly crypto is pushing into traditional banking.

This is an AI-generated summary. Read the original article at: https://decrypt.co/375726/trump-world-liberty-bank-charter-usd1-stablecoin