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World Liberty Trust gets conditional OCC approval for USD1 stablecoin
The OCC approval clears the way for World Liberty Trust Co. to take over issuance of the USD1 stablecoin from BitGo, pending final preopening requirements.
CoinDesk reports the U.S. Office of the Comptroller of the Currency granted World Liberty Trust Company a preliminary conditional approval for a federal charter, allowing it to operate as a national trust bank. The decision was announced in a letter posted to the regulator's website and is tied to additional preopening requirements that must be met before final approval is granted.
The regulator’s letter says World Liberty Trust Company plans to focus on services related to World Liberty Financial’s USD1 stablecoin. According to the filing, the bank is set to issue USD1 to institutional clients nationwide and to provide digital asset custody services as a fiduciary, primarily for USD1 customers and other institutional clients.
CoinDesk adds that World Liberty would assume the USD1 issuance role from BitGo Bank & Trust, National Association, the current exclusive issuer and custodian for USD1. World Liberty applied for the charter in January, and the process drew opposition from Democratic lawmakers who raised concerns about the broader World Liberty entities being owned in part by President Donald Trump.
The report also notes that Senator Elizabeth Warren challenged the OCC leadership in May, arguing the regulator should stop unqualified crypto banks from receiving trust charters as firms seek the ability to issue U.S. stablecoins and access the banking system without intermediaries. The article excerpt ends as Warren had asked the OCC to halt the approvals.