World Liberty Trust Company, a cryptocurrency bank approximately 38% owned by an entity affiliated with Donald Trump and his family members, received conditional approval from the US Office of the Comptroller of the Currency this month to begin operations. The bank will issue USD1, a stablecoin pegged to the dollar, and will not engage in traditional banking activities such as lending or offering deposit insurance.
According to cryptocurrency experts interviewed by the Guardian, the bank’s business model relies on two key features: stablecoins carry virtually no risk of financial loss, and depositors have little conventional incentive to use them. Five experts told the publication that the primary motivation for depositors would be the financial connection to the Trump family and the potential to gain favor with the White House. James Angel, an associate professor at Georgetown University’s McDonough School of Business, characterized the arrangement as “a very efficient way to buy influence with the Trump gang.” The bank will not be permitted to pay interest to depositors under regulations finalized in 2025, though it can generate revenue by investing customer deposits in US Treasury bonds.
World Liberty Financial and federal regulators have defended the approval process. A company spokesperson stated that the charter approval demonstrates robust regulatory oversight from the OCC that will persist beyond the current administration. The OCC noted in its approval letter that the application was reviewed by career staff rather than political appointees, and that consultations with ethics officials confirmed compliance with government ethics standards. However, critics have raised concerns about the unprecedented nature of a sitting president holding an interest in a bank regulated by his own administration. Patrick Woodall of Americans for Financial Reform and Jeremy Kress, a University of Michigan law professor, characterized the approval as exceeding statutory authority and lacking precedent.
USD1, launched in March 2025, currently holds approximately $4 billion in market circulation, substantially smaller than competitors Tether and Circle’s USDC. Trump has promoted the stablecoin as part of his broader deregulation agenda for financial technology, stating at a recent White House event that new crypto technologies had faced “crippling regulations” prior to his administration.
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