- World Liberty Trust received preliminary OCC approval to organize a national trust bank focused on USD1 issuance and institutional custody.
- The proposed bank would replace BitGo as USD1’s exclusive issuer and institutional custodian under federal OCC supervision.
- WLTC will not seek FDIC insurance, a Federal Reserve master account or status as a bank under the Bank Holding Company Act.
World Liberty Trust received preliminary conditional approval from the U.S. OCC to organize a national trust bank for USD1 operations. The proposed bank would issue and redeem USD1, manage its reserves, and provide digital asset custody for institutional clients under federal supervision.
USD1 Issuance And Custody Move Under One Entity
The approval allows World Liberty Trust Company, National Association, to proceed through the remaining chartering steps. However, WLTC must satisfy OCC conditions and complete preopening requirements before starting operations.
World Liberty Financial said WLTC would replace BitGo as the exclusive USD1 issuer and custodian for institutional clients. The company also plans to offer digital asset custody services to institutional customers nationwide.
According to Zach Witkoff, World Liberty Financial’s co-founder and CEO, the company received conditional approval to organize WLTC. He said the bank would issue USD1 and provide custody under OCC supervision.
USD1 has more than $4 billion in circulation, according to World Liberty Financial. The stablecoin’s reserves include U.S. dollars held at financial institutions, government money market funds, and cash equivalents.
The company said WLTC would use segregated customer assets, independent reserve management, and AML and sanctions screening. It would also undergo regular OCC examinations after opening.
Five-Member Board To Oversee Proposed National Trust Bank
WLTC will have a five-member board led by Zach Witkoff as chair. Scott Alper, president and chief investment officer of Witkoff Group, will also serve on the board.
Robert Witkoff, a former co-chief investment officer at The Chubb Corporation, will join the board. Jeffrey Weiner, former chairman and CEO of Marcum LLP, will serve as an independent director.
Erin Baskett, a FINRA Board of Governors member and Sine Qua Non Capital founder, will also serve independently. Mack McCain will become chief trust officer, while Daniel Dietzel will serve as chief financial officer.
World Liberty Trust does not plan to become a federally insured depository institution. It also does not plan to seek a Federal Reserve master account or become a bank under the Bank Holding Company Act.
USD1 is available through Binance, Coinbase, Kraken, Bybit, OKX, Bitget, Gate, KuCoin, Crypto.com, and MEXC. It is also available through decentralized exchanges including Uniswap and PancakeSwap.
