World Liberty Financial has rejected claims that political connections drove USD1’s growth after the stablecoin’s circulating supply surpassed $4 billion. CEO Zach Witkoff said the token’s expansion reflects institutional demand, even as lawmakers continue to examine the company’s ownership structure and foreign financial ties.

CNBC reported on Aug. 25 that Witkoff described USD1’s adoption as evidence of demand that is independent of favorable treatment from President Donald Trump’s administration. His remarks came after preliminary federal approval for the company’s proposed national trust bank, a step that adds a more formal regulatory structure around how the stablecoin could be issued and managed.

🇺🇸JUST IN: World Liberty Financial CEO Witkoff says the OCC’s conditional trust charter will give the market “more confidence in $USD1 .” He says the new federal oversight framework requires 1:1 reserve backing, formal KYC/AML policies and regular OCC exams.… — CryptosRus (@CryptosR_Us) August 25, 2026

🇺🇸JUST IN: World Liberty Financial CEO Witkoff says the OCC’s conditional trust charter will give the market “more confidence in $USD1 .” He says the new federal oversight framework requires 1:1 reserve backing, formal KYC/AML policies and regular OCC exams.…

How World Liberty Financial is expanding USD1

Launched in March 2025, USD1 is among the largest dollar-backed cryptocurrencies. World Liberty Financial says each token is backed by U.S. dollars held at financial institutions, government money market funds, and other cash equivalents, a structure meant to support stablecoin users who rely on predictable redemption and reserve disclosure.

Abu Dhabi-backed investment fund MGX gave USD1 an important institutional use case when it used the stablecoin for its $2 billion investment in Binance in May 2025. Witkoff announced the transaction at the TOKEN2049 event in Dubai as the deal’s “official stablecoin.” MGX had previously disclosed the Binance investment in March without specifying the settlement token.

The transaction helped establish early adoption, and Binance’s role in USD1 circulation later drew attention. According to a Forbes report in February based on Arkham Intelligence data, wallets controlled by Binance and its customers held about $4.7 billion in USD1. The report said that figure represented nearly 87% of the stablecoin’s total $5.4 billion supply at the time. USD1 circulation has since fallen below that level, but World Liberty Financial says it still exceeds $4 billion.

USD1 is traded on Coinbase, Kraken, Crypto.com, and other exchanges.

On Aug. 14, the Office of the Comptroller of the Currency granted preliminary conditional approval to World Liberty Trust Company. WLTC Holdings LLC submitted the application in January.

Under the proposed model, the trust would issue and redeem USD1 and handle reserves and custody services. BitGo currently provides those services.

The trust bank would not offer retail deposits, checking services, or lending. Its permitted activities would include custody services, reserve management, stablecoin settlement, and fiduciary services.

Why World Liberty Financial faces political scrutiny

According to Reuters, a firm associated with Trump controls 38% of World Liberty Financial’s holding company. Zach Witkoff is the son of Steve Witkoff, Trump’s envoy and an emeritus founder of the cryptocurrency company.

The White House has said Trump’s properties are held in a trust controlled by his children and that he is not managing World Liberty Financial during his presidency.

Scrutiny intensified after reports alleged that Aryam Investment 1 took a 49% stake in World Liberty Financial in a $500 million transaction. UAE National Security Adviser Sheikh Tahnoon bin Zayed Al Nahyan backs the Abu Dhabi vehicle, and Tahnoon also chairs MGX.

In June, Democratic senators called for hearings over the allegations, citing questions about whether the deal affected U.S. decisions on selling arms or advanced AI chips to other countries.

The OCC said foreign investors did not qualify as the principal shareholders of the bank. Several investors also signed an agreement limiting their control over the bank’s affairs.