World Liberty receives provisional banking licence from OCC

World Liberty Financial, the crypto company linked to the family of President Donald Trump, has received preliminary approval from the US regulator OCC (Office of the Comptroller of the Currency) to establish a national trust bank. The bank is to manage the reserves that back the company’s USD1 stablecoin. The approval fits a broader trend: it is currently easier to obtain a US banking licence than at any point in nearly twenty years.

In short:

• World Liberty Financial has received preliminary OCC approval for a national trust bank to support its USD1 stablecoin.
• The OCC approved 22 bank applications in the first 19 months of Trump’s second term, more than in the previous five years combined.
• World Liberty must still meet requirements regarding capital, governance and oversight before the licence becomes final.

Trust bank to support USD1 stablecoin

According to Bloomberg, World Liberty Financial wants to use the trust bank to safeguard the assets that back the value of its USD1 stablecoin. A trust bank is not permitted to offer regular savings or current accounts, but it can manage capital and assets on behalf of third parties.

The approval is preliminary. Before the licence becomes final, World Liberty must still demonstrate that the company meets the requirements regarding capital buffers, internal governance and independent oversight.

Notable rise in new banking licences

The approval coincides with a sharp increase in new banking licences in the United States. In the first 19 months of Trump’s second term, the OCC approved 22 applications, more than in the previous five years combined. This is according to figures from the OCC itself.

The deregulatory stance of the Trump administration currently makes it easier to obtain a national banking licence than at any point in nearly two decades. There were previously reports of new crypto initiatives around the Trump family, but obtaining its own banking licence marks a new step in the company’s financial ambitions.