World Liberty Financial Gains Preliminary OCC Approval for Bank

World Liberty Trust Company receives preliminary OCC approval to establish a national trust bank for USD1 stablecoin operations and institutional custody.

This decision brings the company significantly closer to placing the issuance, reserves, and institutional custody of the USD1 stablecoin under direct federal banking supervision.

USD1 Moves Toward Banking Supervision

World Liberty Trust Company (WLTC) is planned as a new national trust bank specializing in stablecoin operations. Once final authorization is granted, it will operate under the oversight of the Office of the Comptroller of the Currency (OCC), centralizing activities typically split between issuers, reserve managers, and custodians.

The bank’s scope will include the issuance and redemption of USD1, the management of assets backing the token, and digital asset custody services tailored for institutional clients.

According to the company, USD1 is backed by dollar deposits at financial institutions, U.S. government money market funds, and cash equivalents. The stablecoin has already reached a circulating supply exceeding $4 billion.

The new structure ensures that client assets remain segregated and reserves are managed independently. Furthermore, operations will be subject to rigorous anti-money laundering (AML) and sanctions compliance checks, alongside regular examinations by the OCC.

Approval Remains Preliminary

The regulator’s decision does not mean World Liberty can begin banking operations immediately.

This preliminary conditional approval is just one step in the extensive process of securing a national bank charter. Before WLTC can open its doors, the company must satisfy specific conditions set by the OCC and meet all remaining regulatory requirements for commencing business.

If the process is successfully finalized, World Liberty will possess a federally regulated framework to manage the core infrastructure powering USD1.

World Liberty Builds Infrastructure Around USD1

The bank will be governed by a five-member board, combining representatives from World Liberty Financial and independent directors. World Liberty co-founder Zach Witkoff will serve as chairman. Independent members include Jerry Weiner, former chairman and CEO of Marcum LLP, and Erin Baskett, a FINRA board member.

Mac McCaughan has been designated as the Chief Operating Officer, while Daniel Ditzel, the former CFO of institutional broker Hidden Road, will take on the role of Chief Financial Officer.

Securing a banking license would grant World Liberty greater control over the USD1 lifecycle. Rather than relying on external financial intermediaries for critical functions, the group intends to unify token issuance, redemption, reserve management, and institutional custody within a single, federally supervised entity.

While USD1 is already available on various centralized and decentralized crypto platforms, its $4 billion market capitalization marks a turning point. For World Liberty, the next phase is not just expanding distribution, but establishing a regulated banking infrastructure around the stablecoin itself.