World Liberty Financial (WLFI), a DeFi protocol and cryptocurrency ecosystem, has received preliminary conditional approval from the US Office of the Comptroller of the Currency (OCC) to organise a de novo national trust bank.
World Liberty Trust Company (WLTC) will be purpose-built for stablecoin operations and organised by its sponsor, WLTC Holdings.
The bank will operate under federal oversight, partaking in the issuance and redemption of the firm’s US dollar-pegged stablecoin, USD1, management of its reserve backing, and institutional digital asset custody services.
Before WLTC can commence operations, it must satisfy specific conditions laid out in the OCC’s approval letter and complete the necessary steps to open.
The bank will be governed by a five-member board comprising Zach Witkoff, co-founder and CEO of WLFI; Scott Alper, president and chief investment officer of Witkoff Group; Robert Witkoff, former co-chief investment officer of The Chubb Corporation; Jeffrey Weiner, former chair and CEO of Marcum; and Erin Baskett, a member of the US Financial Industry Regulatory Authority (FINRA) board of governors.
According to World Liberty, WLTC will feature segregated customer assets, independent reserve management, anti-money laundering (AML) and sanctions screening, and regular OCC examination.
Mack McCain, general counsel at WLFI, will serve as chief trust officer and oversee fiduciary operations, with Daniel Dietzel, formerly of institutional prime brokerage Hidden Road, holding the role of chief financial officer upon opening.
Commenting on the preliminary approval, Witkoff says: “What makes a stablecoin trustworthy is the strength of the reserve behind it, and who stands accountable for it.
“A national trust bank brings USD1 issuance, custody, and reserve management together under OCC supervision, examined on the same standards that have governed banks for generations.”
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