The Office of the Comptroller of the Currency (OCC) on Friday granted preliminary conditional approval for a national trust bank tied to World Liberty Financial, a crypto venture partially owned by President Donald Trump‘s family.

The decision, announced in a letter posted on the OCC’s website, advances World Liberty Financial’s plans to establish a national trust bank focused in part on issuing and managing the USD1 stablecoin.

World Liberty Trust Company, National Association, would be based in Bay Harbor Islands, Florida, and plans to issue and redeem USD1, maintain reserves backing the stablecoin and provide digital asset custody and related services to institutional customers.

In its letter, the OCC said it granted preliminary conditional approval to World Liberty Trust Company’s application for a national trust bank charter, which was submitted in January.

The firm welcomed the decision, calling it a “milestone” in its efforts to open the bank.

“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,” World Liberty Trust President and Chairman Zach Witkoff said in a statement. 

“We welcome continuous scrutiny from federal regulators for many years to come.”

Witkoff is the son of Trump’s special envoy, Steve Witkoff.

Zach Witkoff said in an X post that the proposed national trust bank would have a clear objective.

“Our ambition is clear: to build the most trusted and widely used digital dollar in the world while strengthening the role of the U.S. dollar across the global economy.”

The bank cannot begin operating yet and must satisfy a series of requirements before opening and receiving final approval from the OCC.

A significant portion of the OCC’s letter addressed objections raised by commenters over potential Trump family conflicts, foreign investment, stablecoin regulation, FDIC insurance and regulatory favoritism.

On its website, World Liberty Financial states that it is 38% owned by “an entity affiliated with Donald J. Trump and certain of his family members.”

The OCC rejected those objections as grounds for denying the charter and said staff reviewed the application under established procedures.

“Career OCC staff reviewed the application for consistency with the statutory, regulatory, and policy requirements and factors for approval of a de novo application,” the OCC wrote.

An OCC official emphasized the importance of de novo banks in a statement to FOX Business, saying a robust pipeline of new banks is crucial to a healthy financial system.

The official said new entrants bring new ideas, products and services that increase competition, drive innovation and expand consumer choice, contributing to a strong and diverse banking system that supports a modern economy.

Reuters contributed to this report.