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World Liberty Financial’s push into federally regulated banking has opened a new front in the debate over President Donald Trump’s crypto business interests, after details of a large investment tied to one of the United Arab Emirates’ most powerful officials returned to the spotlight.
World Liberty Trust Company received preliminary conditional approval from the Office of the Comptroller of the Currency on Aug. 14 to organize as a national trust bank. A recent report highlighted the ownership structure behind the proposed institution, including a 49% stake in its holding company held by investors backed by Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security adviser and brother of the country’s president.
The Trump-family-affiliated investment vehicle holds another 38%, according to recent reporting. The UAE-linked investment originated from a $500 million deal completed shortly before Trump returned to office in January 2025.
OCC Approval Moves USD1 Closer to Federal Oversight
The regulatory milestone is significant, but it is not a final bank charter.
The OCC decision grants World Liberty Trust Company conditional preliminary approval. The company must satisfy additional requirements before opening, including maintaining at least $20 million in capital, establishing appropriate management and audit functions, and meeting federal supervisory conditions.
If final approval follows, World Liberty could bring issuance, reserve custody and administration of its USD1 stablecoin under the same federally supervised entity. Those functions are currently handled partly through outside partners, including BitGo. The bank would not operate like a conventional retail lender taking ordinary deposits and issuing mortgages. Instead, it would focus primarily on custody, settlement and asset-servicing activities.
The initial charter approval came as USD1 continued growing into a major stablecoin. Reuters put its market capitalization at roughly $4 billion in mid-August, making it the fourth-largest stablecoin at the time.
UAE Investment Fuels Conflict-of-Interest Questions
The biggest controversy is not simply that World Liberty has foreign investors. It is the overlap between the Trump family’s commercial interests and U.S. policy toward the UAE.
Sheikh Tahnoon oversees major Emirati investment interests and serves as the UAE’s national security adviser. Democratic lawmakers have questioned whether the $500 million World Liberty investment should receive additional national-security scrutiny, particularly given subsequent U.S. decisions affecting advanced AI chip exports to the UAE.
Those concerns remain allegations of potential conflicts rather than proof that U.S. policy decisions were exchanged for the investment. World Liberty representatives have denied that the deal was connected to administration policy, while the White House has maintained that Trump is not involved in managing his business assets.
The OCC has also sought to address concerns over investor influence. Its approval process included “passivity agreements” under which certain shareholders committed not to control or influence the bank’s operations. Eric Trump signed such an agreement on behalf of a Trump-family investment vehicle.
| UAE-linked investors: 49% stake | Foreign influence questions |
| Trump-affiliated entity: 38% stake | Conflict-of-interest concerns |
| OCC status: conditional approval | Final approval still pending |
| Minimum capital: $20M | Governance under scrutiny |
| Passivity agreements in place | Investor influence concerns |
A Bigger Stablecoin Business Raises the Stakes
The debate comes as World Liberty moves USD1 deeper into payments and digital-asset infrastructure. Stablecoins increasingly function as blockchain settlement instruments rather than merely trading tools, a trend explained in Coinpaper’s recent guide to stablecoin payments.
That growth also gives issuers more direct responsibility for reserves, redemptions and compliance. World Liberty has already faced questions about centralized issuer powers after HTX delisted USD1 following a dispute over frozen exchange-linked addresses.
The financial stakes for the Trump family are substantial. Trump’s 2025 disclosure showed more than $1.4 billion in income from family crypto ventures, with nearly $800 million tied to World Liberty Financial
World Liberty’s charter therefore sits at the intersection of three rapidly converging issues: federal crypto banking, foreign investment and a sitting president’s private financial interests. Final OCC authorization would push that relationship further into the regulated U.S. banking system.
World Liberty timeline: Show the January 2025 UAE-linked $500 million investment, USD1’s March 2025 launch, the January 2026 trust-bank application, Aug. 14 conditional OCC approval and final authorization as the remaining regulatory milestone.
Source: coinpaper.com