The U.S. Monetary Supervisory Authority (OCC) has initially and conditionally approved the establishment of a National Trust Bank. The proposed structure, located in Florida, is linked to World Liberty Financial, supported by the Trump family, and will facilitate the restructuring of the distribution arrangements for the USD1 stabilization currency.
To take over USD1 distribution
According to the decision letter of the OCC, the agency plans to be responsible for the issuance and redemption of USD1 to replace BitGo, which is currently the sole issuer and trustee. In addition to stabilizing currency operations, it plans to provide digital asset hosting as a trustee and to allow the client to convert the approved stability currency to USD1.
The document shows that it is a national trust bank and not a traditional commercial bank. Under the application arrangement, the Agency would not absorb deposits, would not provide United States Federal Deposit Insurance Corporation (DFIC) insurance and would not apply to the Federal Reserve owner ' s account at this stage.
Multiple conditions attached to approval
This ratification is not final and unconditional. OCC requires the Agency to meet a number of preconditions, including at least $20 million in capital funds, and to comply with the legal requirements of the GENIUS Act, which came into force last year.
- Minimum capital requirement is $20 million.
- Institution type: National Trust Bank
- Once approved, you must open within 18 months.
The paper also referred to the commitment of the relevant institutions not to fall within the “bank” definition of the Bank Holdings Act. This means that its operations will be concentrated on trust, trust and currency stabilization services, as opposed to non-traditional loan operations.
Trump connection raises questions.
During the review of the application, the regulator received a number of comments challenging the possible conflict of interest between the project and Trump, its family, the Witkoff family and Emirates investors, as well as the issue of remuneration provisions in the United States Constitution.
However, OCC has largely not adopted this view. The regulator stated that World Liberty Financial was not in itself a direct subject of the application and that the related political and conflict of interest issues were therefore outside the core of the review.
Public documents indicate that the co-founder of the project, Zachary Witkoff, was listed as organizer, director and director, and another passive holding commitment document was signed by Eric Trump on behalf of an investment entity. United States Senator Elizabeth Warren criticized OCC for issuing such licences to encryption companies, claiming that they had some banking functions but were not subject to the corresponding regulatory controls.