Donald Trump-linked World Liberty Trust wins conditional $1 stablecoin approval
World Liberty Trust Company, a newly created trust bank linked to President Donald Trump and his family's crypto venture World Liberty Financial, just got conditional approval from the US banking regulator to potentially launch its own $1 stablecoin and handle its own dollar reserves.
The catch? They cannot act like a regular bank, so no taking deposits or giving out loans.
World Liberty Trust faces $20 million requirement
The company has to keep $20 million in capital and hire a qualified employee to serve as the firm's internal audit manager.
Non-US investors had to agree not to interfere, thanks to "passivity agreements."
World Liberty Trust president and chairman Zach Witkoff called the firm's conditional approval a "milestone" for bringing its stablecoin under federal oversight.
Still, some lawmakers are worried about possible conflicts of interest with the Trump family's involvement and a reported purchase of a $500 million stake in a deal linked with the United Arab Emirates's national security adviser.
Meanwhile, $1 is making waves: it is now the fourth-biggest stablecoin globally, with a $4 billion market cap.