Crypto bank part-owned by Trump family offers depositors way to ‘gain favor’ with White House, experts say - The Guardian

World Liberty Financial Trust Company, a crypto bank partly owned by Donald Trump and his family, received conditional approval from the US Office of the Comptroller of the Currency on 14 August 2026, according to The Guardian and HuffPost. An entity affiliated with the president and his relatives owns about 38% of the company, HuffPost reports, and the OCC is led by a political appointee of the president. The bank will not lend or take federally insured deposits; it will issue the Trumps' dollar-pegged stablecoin, USD1. Experts quoted by The Guardian say the only logical reason for depositors to participate is to gain favor with the White House. A Reuters/Ipsos poll found 63% of Americans consider Trump family crypto profits inappropriate.

Background

The sources describe a business built on two pillars. The Guardian reports that cryptocurrency experts say there is almost no risk the bank can lose money, and that the sole logical motivation for depositors is a financial connection to a president and his relatives. Under stablecoin rules set by the Genius Act, which Trump signed in July 2025, issuers cannot pay depositors interest but can invest reserve cash in short-term US government-backed treasury bonds and keep the yield. USD1 was launched by World Liberty Financial in March 2025, two months after Trump re-entered the White House, and the company filed its OCC application six months after the law was signed, stating an objective to drive mainstream adoption of USD1. HuffPost reports the company was launched in 2024 by Trump and his sons Don Jr. and Eric, with Trump holding the title Co-Founder Emeritus and his sons listed as co-founders. Reuters/Ipsos polling, cited by newscord.org, found 69% of Americans say Trump's business interests influence his policy decisions, and a June report from the US Office of Government Ethics disclosed he earned $1.4 billion from crypto-related investments in 2025.

What happened

On 14 August 2026 the OCC granted conditional approval to World Liberty Financial Trust Company to start a bank, according to The Guardian and HuffPost. The Guardian reports an entity affiliated with Donald Trump and his family owns about 38% of the company, and that the agency is led by a political appointee of the president. The bank will not lend to businesses or individuals, issue mortgages or credit cards, or obtain federal deposit insurance; it will directly issue USD1. Because of stablecoin regulation under the Genius Act, signed by Trump in July 2025, it cannot pay depositors interest but can earn interest by holding US treasury bonds. James Angel of Georgetown's McDonough School of Business told The Guardian the only reason to deposit is to appease Trump or gain favor, calling it a very efficient way to buy influence. A company spokesperson said World Liberty is running towards regulation and that the national charter ensures robust and permanent OCC supervision that will outlast the Trump administration. The OCC says career staff reviewed the application. Sen. Elizabeth Warren called it the most brazen act of self-dealing our financial system has ever seen, per HuffPost. At a White House event, Trump said he named the Genius Act after himself and that it has worked out very well.

Market impact

The sources offer few price or flow figures, and DeFi Intel does not add any. HuffPost reports the 38% stake has led to an increase of more than $2 billion in Trump's net worth since taking office, and that the amount of money on the line exceeds any profit from his D.C. hotel or other first-term ventures. Newscord.org, citing Reuters, reports a June US Office of Government Ethics disclosure that Trump earned $1.4 billion in 2025 from crypto-related investments, including through World Liberty Financial and his memecoin Official Trump (TRUMP). The Reuters/Ipsos poll surveyed 1,166 adults from 14 to 17 August 2026, with a margin of error of plus or minus 3 percentage points overall and 5 points for partisan subgroups; 63% called Trump family crypto profits inappropriate, 69% said his business interests influence policy, 69% of Republicans called the profits appropriate and 92% of Democrats responded negatively. Reuters reported the Digital Asset Market Clarity Act was scheduled for a cloture vote on 15 September. No stablecoin market share, deposit totals or token prices appear in the sources.

Why it matters

The sources frame the charter as more than a business milestone. HuffPost calls it the most significant step in Trump's entanglement of private business with the presidency, warning it provides a veneer of regulatory legitimacy for potential corruption, because a regulator appointed by and serving at the president's pleasure now oversees the president's own bank. Warren told HuffPost the stablecoin business gives a CEO seeking advantage, someone seeking a pardon, or anyone hoping for federal favor a profitable transaction with the president's business interests, and that this is corruption. Chastity Murphy, a former Treasury adviser, told HuffPost a conflict at the top does not stay personal: it distorts competition, steers capital flows, concentrates risk and quietly reshapes the market. The Guardian notes Democrats say there has never been a case of a president holding an interest in a bank his own administration approves and regulates. Newscord.org reports the poll findings could weigh on Trump ahead of the 3 November midterms, where Democrats regularly highlight alleged corruption, and that many Democrats and some Republicans would not back a crypto bill without a strong clause barring politicians from profiting.