The Trump family's crypto empire is getting a bank. But not the kind you think
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A crypto firm backed by President Trump's family just got preliminary approval for a bank — just not the type where you make an ATM withdrawal.
Why it matters: The move expands Trump's grip on the world of cryptocurrency, which delivered the president a $1 billion windfall last year alone.
- It would also mark an unprecedented arrangement: A sitting president's family would have a financial stake in a federally chartered bank.
Driving the news: The Office of the Comptroller of the Currency gave preliminary approval Friday for World Liberty Trust Company (WLTC) to obtain a national trust bank charter.
- WLTC is an affiliate of the Trump family-backed World Liberty Financial.
- DT Marks SC LLC, a corporate entity with ties to Trump's family, has an investment in the proposed bank, too. Eric Trump, son of Donald Trump, signed an agreement over that investment.
Does this mean President Trump has a bank?
Not exactly. National trust bank charters, like the one conditionally awarded to WLTC, aren't your typical PNC or Bank of America — they don't allow firms to take deposits, offer checking or savings accounts or access FDIC insurance.
- WLTC won't even meet the technical definition of a "bank" as outlined by the Bank Holding Company Act.
- Instead, these banks can focus on digital assets and cryptocurrencies, and support services tied to those products such as custody, settlement, payments and asset management.
WLTC will specifically center around stablecoins, a form of crypto that holds a one-to-one value with the U.S. dollar.
How this bank would make money
Zoom in: The OCC's conditional approval would allow Trump-backed WLTC to directly issue and redeem the stablecoin "USD1" to clients nationwide for U.S. dollars.
- Right now, the company BitGo handles key parts of USD1 for World Liberty. The new bank would bring several core services in-house.
How it works: WLTC could make money from the billions of dollars in reserves backing USD1.
- For example, if a company buys $1 billion worth of USD1, roughly $1 billion in reserve assets must back those tokens.
- Those reserves can earn interest while they remain in circulation — creating a financial incentive for WLTC to get more companies and investors using USD1.
Trump's crypto empire expands
State of play: Trump and his family members have been planting a stake in the crypto game.
- Trump's financial disclosures showed more than $1 billion in crypto earnings last year, including $515 million in WLFI token sales and $65 million from equity sales tied to the venture's holding company.
- There was even noise of a crypto token tied to a Trump-branded Maldives resort, though that plan was delayed by the Iran war.
- Additionally, WLF's CEO, Zach Witkoff, is the son of Trump's Middle East negotiator, Steven Witkoff.
Friction point: That said, the OCC's approval has drawn criticism over conflict of interest concerns that Trump would have his own bank.
- "President Trump is now the first President in history to approve, operate, and supervise his own bank," Sen. Elizabeth Warren (D-Mass.) said after the OCC approval.
- "This is the most brazen act of self-dealing our financial system has ever seen — and Congress cannot allow it to stand," she said.
What they're saying: The OCC said career staff reviewed the application and generally supervise and enforce laws governing these chartered institutions.
What's next: WLTC must raise capital and other pre-opening requirements before receiving final approval.
