web3: Foreign media: Trump's equity structure in crypto banks sparks controversy
Cryptonews
3h ago
Ai Focus
Foreign media reports that a crypto bank associated with the Trump family has received preliminary approval from the US federal government, with a senior Emirati entity holding 49% of the shares, sparking controversy over conflicts of national security and interests.
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Foreign media reports that the crypto finance projects associated with the Trump family are attracting greater attention due to their equity structure and regulatory approval processes. The focus of the controversy is that the largest single shareholder behind the banking entity responsible for the issuance and redemption of the stablecoin USD1 is not the Trump family, but rather an entity related to Sheikh Tahnoon, the brother of the UAE President and National Security Advisor.

OCC has given preliminary conditional approval.

The report cited documents from the US Monetary Supervision Agency ( OCC ) stating that on August 14, World Liberty Trust Company received preliminary conditional approval from the federal trust bank. If the institution meets the requirements before opening for business in the future, it will be responsible for the issuance, redemption, and reserve management of USD1, as well as providing custody and stablecoin exchange services to institutional clients.

According to the disclosure, this bank will not accept customer deposits, issue traditional loans, nor provide FDIC deposit insurance. It will also not handle WLFI governance token services. OCC requires it to maintain at least $20 million in qualified capital at the time of opening, as well as meet regulatory requirements such as having a financial officer and conducting internal audits.

UAE-related entities hold a 49% stake

Reports indicate that WLTC Holdings is the holding company of the aforementioned proposed bank. Among them, StringZ Holding RSC holds 49% of the shares, making it the largest single shareholder; entities related to the Trump family hold 38% of the shares; the remaining shares are held by individuals associated with the co-founders of World Liberty Financial.

The article states that the investors behind StringZ include Sheikh Tahnoon and his co-investors. Tahnoon is also a key figure in Abu Dhabi's AI investment platform G42. Based on this, the report links this transaction to the Trump administration's relaxation of AI chip export restrictions on the UAE, suggesting that with these two factors combined, concerns about conflicts of interest have further intensified.

USD1 has become the fourth-largest stablecoin

USD1 was launched in March 2025, pegged at a 1:1 ratio to the US dollar, with reserve assets including cash, US Treasury bonds, and government money market funds. Reports indicate that the current circulation of this stablecoin has exceeded $4 billion, ranking it fourth in the world by market value.

During its growth process, a large-value settlement transaction attracted particular attention. In May 2025, an Abu Dhabi state-owned investment institution MGX used USD1 and Binance to complete a $2 billion transaction settlement. This also strengthened the connection between Abu Dhabi capital and this stablecoin.

Members of parliament call for the initiation of national security reviews

The report mentioned that U.S. senators Elizabeth Warren and Andy Kim have requested the U.S. Committee on Foreign Investment in China to conduct a national security review of this arrangement. On the Democratic side, they referred to the approval by OCC as "clearself-dealing."

The article argues that the controversy lies not only in the Trump family's shareholdings themselves but also in the regulatory agencies appointed by the president, which approved a financial entity that has a direct financial relationship with the presidential family. At the same time, Trump's 2025 financial disclosure documents show that his income from cryptocurrency-related activities exceeded $1.4 billion, with some of that revenue coming from the sale of World Liberty Financial shares and tokens.

Additional information:Reports indicate that Sheikh Tahnoon's side promised to invest $500 million in World Liberty Financial in January 2025, of which approximately $263 million has already flowed to entities related to the Trump family.

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