Trump-linked World Liberty Financial wins OCC bank approval as $112 million DeFi position sits near liquidation
The OCC gave World Liberty Financial preliminary conditional approval to charter World Liberty Trust Company, a national trust bank that would place USD1 stablecoin issuance and reserve custody under federal supervision if final conditions are met. The approval requires at least $20 million in capital, internal audit controls, and notice of major business-plan changes; the bank cannot take traditional deposits or make full commercial loans and would not have FDIC insurance. Separately, on-chain data shows unresolved leverage risk tied to WLFI collateral on Dolomite. World Liberty posted 5 billion WLFI as collateral for about $75 million in stablecoin borrowing, later repaid $25 million, but WLFI’s price has since fallen, reducing the collateral cushion. Current wallet data suggests at least two positions, one relatively safe and another with a health rate near liquidation. The exposure may be broader than previously reported, and the remaining risk appears concentrated in specific wallets rather than resolved companywide.
