U.S. financial regulators have declined to disclose details of World Liberty Financial’s federal bank license application, fueling controversy over potential preferential treatment. The company reportedly received a $500 million investment from Abu Dhabi’s royal family. The Office of the Comptroller of the Currency, which approves bank charters, has been pressed to explain its process as part of the dispute. If licensed, World Liberty Financial could issue and custody a USD1 stablecoin pegged to the dollar, a function currently handled by a third‑party service provider.
Democratic lawmakers have questioned whether WLF disclosed a 49% stake sale to Sheikh Tahnoon bin Zayed Al Nahyan, a senior UAE official, citing security concerns about UAE ties. The UAE deal reportedly occurred days before President Trump’s inauguration. WLF applied earlier under the World Liberty Trust Company name, and the UAE transaction was reportedly finalized shortly before the inauguration. The decision to withhold license details comes amid broader scrutiny of potential conflicts of interest and national security concerns.
WLF’s leadership includes co-founder Jack Witkoff and Jeffrey Wyner of Integrity Automotive Holdings, with Steve Witkoff described as involved in negotiations with Russia and Iran. If a federal license is granted, the company would be able to issue and store the USD1 stablecoin directly, while funding and loan services would remain with third-party providers.
Leave a Reply