The Trump family is poised to make a significant entry into the banking sector, as
World Liberty Financial, which is linked to the cryptocurrency market, has been granted the go-ahead by the Office of the Comptroller of the Currency (OCC), the regulatory body overseeing U.S. banking. However, the company must fulfill certain conditions before it can secure final approval, as reported by Bloomberg.
Surge in Bank Charter Approvals
This announcement comes amid a notable increase in bank charter approvals by the OCC, which is currently operating at its fastest pace in nearly two decades. In the first 19 months of President Trump’s second term, the OCC approved 22 bank charter applications, surpassing the total from the previous five years combined. Since the beginning of 2025, around 40 companies have submitted applications for new bank charters, matching the total number received over the last 13 years.
The OCC has also streamlined its decision-making process, aiming to resolve applications within 120 days, a significant reduction from the lengthy timelines that previously characterized the process. For instance, Fidelity Digital Assets received approval in just 71 days, while other companies like Upstart and Bridge took 98 and 120 days, respectively. In contrast, World Liberty Financial's conditional approval took 220 days, longer than many of its peers.
Concerns and Oversight
World Liberty Financial aims to enhance the use of its dollar-backed stablecoin, USD1, and has indicated that establishing a bank could lower operational costs. The company believes that having a bank to manage the assets backing USD1 would not only reduce expenses but also lend credibility to the stablecoin, potentially providing access to affordable funding or government support during financial crises.
However, this initiative has raised eyebrows among Democratic lawmakers, who express concerns that USD1 could facilitate closer ties between businesses and the Trump family while circumventing stricter regulations. In response, World Liberty Financial has asserted that becoming a bank would actually increase government oversight, requiring compliance with regulations on money laundering and customer protection, along with regular audits by the OCC.
To address governance concerns, three investors in World Liberty, including one of Trump’s sons and a businessman with ties to the Abu Dhabi royal family, have agreed to limit their influence over the bank's management. The OCC has confirmed that its staff conducted a thorough review of the application. Initially lacking a chief financial officer, the company has since appointed Daniel Dietzel, a former CFO at Hidden Road Partners, to the position.
As World Liberty Financial awaits final approval, it must meet several conditions, including maintaining a specified capital level and hiring an external auditor. The U.S. banking system has previously faced challenges due to inadequate management, as evidenced by the savings-and-loan crisis of the 1980s, which resulted in the failure of over 1,600 banks and significant taxpayer costs.
