UAE “spy sheikh” reportedly takes 49% stake in Trump family bank venture

The Wall Street Journal reported that Sheikh Tahnoon bin Zayed al Nahyan and co-investors hold a 49% stake in a holding company created by World Liberty Financial to pursue a bank charter. Sheikh Tahnoon is the United Arab Emirates' national security advisor. He is also the brother of the country's president. The OCC recently gave World Liberty Trust Company, National Association preliminary approval to become a national trust bank. World Liberty Financial created the trust company to seek a banking license. The license would allow it to offer stablecoin issuance and redemption. It would also allow on-ramp and off-ramp services. It would allow custody and conversion services. World Liberty Financial issues the USD1 stablecoin. USD1 has a $4 billion market capitalization. USD1 ranks as the fourth-largest stablecoin after Tether and USDC. The holding company is WLTC Holdings. The investors reportedly used a separate entity called StringZ Holding RSC. White House Principal Deputy Press Secretary Anna Kelly said there were no conflicts of interest. The Wall Street Journal previously reported that an investment vehicle backed by Sheikh Tahnoon secretly acquired a 49% stake in World Liberty Financial for $500 million. The acquisition reportedly occurred days before President Donald Trump's inauguration. Top Senate Democrats urged Republican leaders to hold hearings. House Democrats also highlighted the issue. Representative Ro Khanna launched an investigation into money going to World Liberty Financial from the United Arab Emirates royal family in February.