World Liberty Financial Secures OCC Preliminary Approval for National Trust Bank to Issue USD1 Stablecoin

The Office of the Comptroller of the Currency (OCC) has granted preliminary conditional approval for the organization of World Liberty Trust Company (WLTC). This move signals a significant shift toward federal oversight for stablecoin issuers, providing the regulatory framework necessary for institutional-grade digital asset custody and dollar-backed settlement at scale.

What was announced

World Liberty Financial confirmed that the OCC has issued a preliminary conditional approval to organize World Liberty Trust Company, National Association. This de novo national trust bank is specifically designed to handle stablecoin operations under federal supervision. The entity is being organized by its sponsor, WLTC Holdings LLC.

Once operational, WLTC will function as a national trust bank, focusing on the issuance and redemption of USD1, a dollar-backed stablecoin that currently has more than $4 billion in circulation. Beyond issuance, the bank will manage the reserves backing USD1 and provide digital asset custody services tailored for institutional clients. The reserves for USD1 are comprised of U.S. dollars on deposit at financial institutions, U.S. government money market funds, and cash equivalents.

The bank will be led by a five-member board including Zach Witkoff as Chair, Scott Alper of Witkoff Group, and Robert Witkoff, formerly of The Chubb Corporation. Independent directors include Jeffrey Weiner, former CEO of Marcum LLP, and Erin Baskett, a member of the FINRA Board of Governors. Fiduciary operations will be overseen by Chief Trust Officer Mack McCain, while Daniel Dietzel, formerly of Hidden Road, joins as Chief Financial Officer. USD1 is currently available on major platforms including Binance, Coinbase, Kraken, Bybit, OKX, Bitget, Crypto.com, and decentralized venues like Uniswap and PancakeSwap.

"USD1 grew because institutions trust how it operates, and confidence at enterprise scale deserves the backing of federal supervision. What makes a stablecoin trustworthy is the strength of the reserve behind it, and who stands accountable for it. 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. We welcome continuous scrutiny from Federal regulators for many years to come."

Zach Witkoff, President and Chairman of World Liberty Trust Company.

The companies involved

World Liberty Financial is the primary architect behind this push for federal chartering. The organization is closely linked to the Witkoff Group, a major investment and real estate firm where Scott Alper serves as President and Chief Investment Officer. To bolster its regulatory standing, the group has recruited leadership from established financial institutions, including former executives from The Chubb Corporation and Marcum LLP, a top-tier U.S. accounting and advisory firm.

The operational backbone of the new trust company includes talent from the institutional digital asset space, specifically Hidden Road, a prime broker focused on institutional credit and settlement. The broader ecosystem for the USD1 stablecoin relies on global trading infrastructure provided by exchanges such as Binance, Coinbase, and Bitget. The involvement of FINRA board members and former leaders from major accounting firms suggests a strategic attempt to bridge the gap between decentralized finance and the traditional U.S. banking system governed by the Office of the Comptroller of the Currency.

What FF News has reported before

FF News has closely followed the expansion of the digital asset ecosystem, particularly regarding the institutionalization of crypto services. We recently covered how Bitget unlocks institutional DeFi yield through strategic partnerships, a move that mirrors World Liberty’s focus on enterprise-scale trust. Our reporting has also touched on the global regulatory landscape, such as Bitget targeting expansion with new license agreements, highlighting the industry-wide trend of seeking formal government recognition to facilitate growth.

What this means

This is a watershed moment for the stablecoin market. By moving USD1 issuance under the direct supervision of the OCC, World Liberty Financial is challenging the dominance of offshore or state-regulated issuers. A national trust bank charter provides a level of "federal "sheen" that institutional treasurers require before committing significant capital to digital assets. This move puts immense pressure on other stablecoin issuers to prove their reserve transparency and regulatory standing. The next step to watch is how quickly WLTC can satisfy the OCC’s final conditions; if successful, it sets a precedent for the "bankification" of stablecoins in the United States.