Fintech · Industry brief

The Office of the Comptroller of the Currency granted conditional approval to World Liberty Trust Co. for a national trust bank charter on Friday, according to an OCC letter posted on the agency's website. World Liberty Trust Co. is sponsored by World Liberty Financial, a crypto firm 38% owned by an entity affiliated with President Donald Trump and his family. The charter will enable World Liberty to issue stablecoins backed by U.S. Treasurys and convertible one-to-one into U.S. dollars, allowing the company to bring stablecoin services in-house from third-party provider BitGo. The approval is conditional pending additional steps including capital raising. Under the Trump administration, the OCC has received 40 charter applications since 2025, a significant increase from the Biden administration, with many tied to crypto projects. Senator Elizabeth Warren criticized the approval as "the most brazen act of self-dealing" and announced plans to introduce legislation preventing presidents and senior officials from owning or controlling banks.

Custodia Bank's Supreme Court petition over Federal Reserve master account access proceeded this week with briefs from Sen. Cynthia Lummis (R-WY), former Sen. Pat Toomey (R-PA), the Blockchain Association, and the Digital Chamber challenging the Fed's denial. The lawmakers' brief, filed Thursday, highlighted a "two-track system" in Fed approvals: federally insured applicants received a 94% approval rate with a 54-day median timeline, while uninsured applicants faced only a 9% approval rate with a 648-day median. The Fed denied Custodia's application in January 2023, citing business model risk and insufficient controls; the Fed has until September 11 to file its response. The trade groups argue the denial effectively debanks the digital-asset industry and undermines the dual banking system by giving federal regulators veto power over state-chartered institutions. (Source: Banking Dive; court documents referenced)

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