OCC Grants Preliminary Conditional Approval for World Liberty Financial National Trust Bank to Support USD1 Stablecoin Operations
World Liberty Financial has announced that the Office of the Comptroller of the Currency (OCC) has granted preliminary conditional approval for the organization of World Liberty Trust Company, National Association (WLTC), a proposed de novo national trust bank designed to support stablecoin-related operations. The proposed institution would be organized by WLTC Holdings LLC, the sponsor behind the new bank.
The preliminary approval represents an important step in World Liberty Financial’s plans to establish a federally supervised banking structure around USD1, its dollar-backed stablecoin. If WLTC ultimately receives authorization to open and begins operations, the national trust bank would be responsible for several activities associated with USD1, including the issuance and redemption of the stablecoin, management of the reserves supporting USD1, and digital asset custody services for institutional customers.
USD1 has grown significantly since its launch and has surpassed $4 billion in circulation, according to World Liberty Financial. The company said the proposed bank is intended to provide an institutional-grade framework for managing the stablecoin and its underlying reserves while bringing key operations under federal regulatory supervision.
Zach Witkoff, President and Chairman of World Liberty Trust Company, said the proposed structure is intended to reinforce confidence in USD1 as the stablecoin expands its presence among institutional users.
“USD1 grew because institutions trust how it operates, and confidence at enterprise scale deserves the backing of federal supervision,” said Witkoff. “What makes a stablecoin trustworthy is the strength of the reserve behind it, and who stands accountable for it.”
Witkoff added that establishing a national trust bank would bring USD1 issuance, custody, and reserve management together within a federally supervised institution. He also emphasized the company’s willingness to operate under continuing regulatory oversight and examination.
“A national trust bank brings USD1 issuance, custody, and reserve management together under OCC supervision, examined on the same standards that have governed banks for generations,” Witkoff said. “We welcome continuous scrutiny from Federal regulators for many years to come.”
The OCC’s preliminary conditional approval does not mean that WLTC can immediately begin operating as a national trust bank. Instead, it represents one stage in a multi-step federal chartering process. Before opening its doors, WLTC will have to meet the specific conditions outlined in the OCC’s approval letter and complete the remaining requirements necessary for the institution to commence operations.
This distinction is important because preliminary conditional approval is subject to further regulatory requirements. The proposed bank must demonstrate that it can establish the appropriate governance, operational, compliance, risk management, and fiduciary frameworks before it can begin conducting the activities contemplated under its charter.
Once operational, WLTC is expected to function under federal supervision as a national trust bank. Its proposed activities will include the issuance and redemption of USD1, management of the reserves backing the stablecoin, and digital asset custody services for institutional customers.
The structure is designed to separate customer assets and provide defined controls around reserve management and digital asset activities. World Liberty Financial said WLTC would operate with segregated customer assets, independent reserve management, anti-money laundering and sanctions screening procedures, and regular OCC examinations.
These measures are intended to establish a regulatory and operational framework for the institution as it serves customers in the rapidly evolving digital asset market. The proposed model places particular emphasis on safeguarding customer assets and maintaining appropriate controls around the reserves that support USD1.
The governance structure of WLTC will include a five-member board comprising representatives associated with World Liberty Financial as well as independent directors with experience in accounting, regulation, investment management, and financial services.
Zach Witkoff will serve as chairman of the board. Witkoff is a co-founder and CEO of World Liberty Financial and will provide leadership to the proposed institution as it progresses through the chartering process.
Scott Alper, President and Chief Investment Officer of Witkoff Group, will also serve on the board. His background in investment management and financial services is expected to contribute to the institution’s strategic and investment oversight.
Robert Witkoff, a former Co-Chief Investment Officer of The Chubb Corporation, will bring approximately three decades of investment management experience to the board. His experience in managing institutional investments adds another layer of financial expertise to the proposed organization.
The board will also include two independent directors. Jeffrey Weiner, former Chairman and CEO of Marcum LLP, will serve as an independent director. Marcum is a major U.S. accounting and advisory firm, and Weiner’s background provides experience in accounting, corporate governance, and professional advisory services.
Erin Baskett will also serve as an independent director. Baskett is a member of the FINRA Board of Governors and the founder of brokerage firm Sine Qua Non Capital. Her background in financial markets and regulatory matters adds further independent oversight to the proposed bank’s governance structure.
The inclusion of independent directors reflects the company’s effort to establish a governance framework that incorporates expertise from outside the founding organization. For a proposed federally supervised financial institution, effective governance and independent oversight are important components of managing operational, fiduciary, compliance, and financial risks.
WLTC has also identified key executives who are expected to oversee its operations following the bank’s opening. Mack McCain will serve as Chief Trust Officer and will be responsible for fiduciary operations once the institution becomes operational.
Daniel Dietzel will serve as Chief Financial Officer. Dietzel previously served as CFO of Hidden Road, an institutional prime broker, bringing experience from the institutional digital asset and financial services sector to the proposed bank.
The proposed leadership structure is intended to combine traditional financial services expertise with experience in digital assets and institutional markets. This combination reflects the nature of WLTC’s planned activities, which would involve both conventional fiduciary and financial responsibilities and digital asset-related services.
At the center of the proposed bank’s operations is USD1, a dollar-backed stablecoin. Stablecoins are digital assets designed to maintain a relatively stable value, typically by being backed by reserve assets such as cash, deposits, government securities, or other highly liquid instruments.
World Liberty Financial said USD1 is backed by U.S. dollars held on deposit at financial institutions, U.S. government money market funds, and cash equivalents. The company’s proposed banking structure would therefore place significant emphasis on reserve management and the mechanisms used to support the stablecoin’s value.
The company said USD1 has surpassed $4 billion in circulation, highlighting the scale that the stablecoin has reached and the potential importance of its proposed institutional infrastructure.
The proposed WLTC structure could provide World Liberty Financial with a dedicated entity focused on managing several core aspects of the USD1 ecosystem. Bringing issuance, redemption, reserve management, and institutional custody within a federally supervised national trust bank could create a more centralized framework for these activities.
For institutional customers, digital asset custody is another significant component of the proposed bank’s business model. Institutional participation in digital assets has increased the demand for professional custody arrangements, asset segregation, compliance controls, and secure operational infrastructure.
WLTC is being organized with these requirements in mind. The proposed institution would implement segregated customer assets, compliance controls, and procedures for anti-money laundering and sanctions screening. Regular OCC examinations would provide an additional layer of regulatory oversight once the bank is operational.
The proposed bank’s approach also reflects the increasing interaction between traditional financial institutions and digital asset markets. As stablecoins become more widely used for payments, trading, settlement, and other financial applications, financial institutions and regulators have placed greater emphasis on the governance and reserve structures supporting these digital assets.
World Liberty Financial’s move to establish a national trust bank is therefore intended to position USD1 within a more formal financial-services framework. Federal supervision could potentially provide institutional users with additional confidence in the governance and operational processes surrounding the stablecoin.
USD1 is currently available through a number of major cryptocurrency exchanges, according to World Liberty Financial. These include Binance, Coinbase, Kraken, Bybit, OKX, Bitget, Gate, KuCoin, Crypto.com, and MEXC. The stablecoin is also available through decentralized exchanges, including Uniswap and PancakeSwap.
Its availability across both centralized and decentralized trading venues gives USD1 access to a broad digital asset ecosystem. The proposed WLTC structure would add another layer to that ecosystem by focusing on regulated trust banking, reserve management, issuance and redemption, and institutional custody.
The OCC’s preliminary conditional approval therefore marks a significant development in World Liberty Financial’s plans for USD1, but it is not the final stage of the process. WLTC must still satisfy the conditions specified by the OCC and complete the necessary steps before it can open and conduct business.
The remaining process will require the proposed institution to demonstrate that its operational and governance structures meet the applicable regulatory requirements. Its ability to commence operations will depend on successfully completing those conditions and receiving the necessary authorization.
For World Liberty Financial, the proposed national trust bank represents an effort to build a long-term institutional foundation for USD1 as its circulation expands. By establishing a dedicated bank subject to federal supervision, the company aims to integrate stablecoin operations with established financial and fiduciary standards.
The development also highlights the growing importance of regulatory structures in the stablecoin market. As digital assets increasingly interact with traditional financial institutions, questions surrounding reserves, custody, governance, compliance, and consumer and institutional protection have become central to the development of the sector.
WLTC’s proposed model addresses these areas through a combination of federal supervision, segregated customer assets, independent reserve management, compliance screening, dedicated leadership, and regular regulatory examination.
Ultimately, the OCC’s preliminary conditional approval provides World Liberty Financial with a path toward establishing a federally supervised national trust bank dedicated to supporting USD1-related activities. If WLTC successfully completes the remaining chartering requirements and begins operations, it would provide a dedicated institutional framework for USD1 issuance and redemption, reserve management, and digital asset custody.
With USD1 already exceeding $4 billion in circulation and available across major centralized and decentralized exchanges, the proposed bank could become an important component of World Liberty Financial’s strategy for supporting the stablecoin’s continued development. The next stage will depend on WLTC meeting the OCC’s conditions and completing the regulatory requirements necessary to open as a national trust bank.
The proposed institution’s combination of experienced financial professionals, independent directors, digital asset expertise, and federal oversight reflects World Liberty Financial’s broader effort to establish a more structured foundation for USD1. As the stablecoin market continues to develop, the outcome of WLTC’s chartering process will be closely watched by financial institutions, digital asset companies, investors, and other participants seeking to understand how stablecoin operations can operate within the U.S. banking regulatory framework.
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