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Trump family-affiliated crypto bank gets OCC conditional approval
The OCC conditional approval would allow the firm to issue the Trumps' dollar-pegged USD1 stablecoin, while depositors would not receive any interest.
The Guardian reports that World Liberty Trust Company, a crypto bank partly owned by Donald Trump and family members, received conditional approval from the US Office of the Comptroller of the Currency (OCC) to start a bank.
According to the report, an entity affiliated with Trump and his family members owns about 38% of the company, and the OCC is led by a political appointee of the US president, prompting criticism from Democrats who have raised corruption concerns.
The bank would differ from a conventional lender, as it would not offer typical services such as making loans or issuing credit cards, nor would it receive federal insurance on deposits. Instead, it would be positioned to issue the Trumps' dollar-pegged stablecoin, USD1, which is used to buy and sell other cryptocurrencies like bitcoin.
The report says stablecoin operations are structured so the bank would not be allowed to pay interest to depositors under a law signed by Trump in 2025. It also states the bank could earn interest for itself by investing collected cash into high-quality liquid investments such as US government-backed treasury bonds, with experts arguing that depositors could be motivated by the connection to the White House.
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