Trump’s World Liberty Financial Debuts Crypto Lending as USD1 Stablecoin Hits $3.5B
World Liberty Financial, a decentralized finance challenge linked to the household of U.S. President Donald Trump, has entered the crypto lending market as its USD1 stablecoin climbs previous $3.5 billion in circulating provide.
The challenge launched its lending and borrowing product, World Liberty Markets, on Monday, as stated by the corporate announcement.
The new web-based utility permits customers to lend and borrow digital belongings inside a single on-chain market constructed round USD1, the platform’s U.S. greenback–backed stablecoin, and its governance token, WLFI.
Users can publish collateral, together with Ether, a tokenized model of Bitcoin, and main stablecoins such as USDC and USDT, with the underlying infrastructure powered by Dolomite.
On-chain Lending Rebounds as World Liberty Financial Builds on USD1 Momentum
World Liberty Financial stated the launch represents the second main product rollout for the challenge, following the introduction of USD1 final 12 months.
The stablecoin has grown quickly, reaching roughly $3.48 billion in market capitalization, with your complete issued provide already in circulation.
USD1 maintains a $1 peg and is deployed throughout a number of blockchains, with the biggest share on BNB Smart Chain at roughly 1.92 billion tokens, adopted by Ethereum with about 1.31 billion.
Smaller however rising allocations exist on Solana, Aptos, Plume, Tron, and a number of other newer networks.
The lending launch comes as on-chain credit score has regained momentum after the collapses of a number of centralized lenders within the earlier cycle.
Galaxy Research reported that crypto-collateralized lending reached an all-time high of $73.59 billion on the finish of the third quarter of 2025, surpassing the 2021 peak.
DeFi lending purposes accounted for $40.99 billion of that complete, capturing 55.7% of the general lending market and rising almost 55% quarter over quarter.
Unlike the final cycle, development has been pushed by absolutely collateralized loans, clear liquidation mechanisms, and on-chain danger administration.
USD1’s Role Expands Across Banking and Crypto Markets
World Liberty Financial’s transfer locations it immediately into this evolving sector, the place demand for borrowing towards digital belongings is rising as traders search liquidity with out promoting holdings.
The firm stated World Liberty Markets is designed to develop the utility of USD1, permitting holders to deploy the stablecoin whereas accessing borrowing alternatives.
Users who provide USD1 are eligible for the challenge’s present factors program, which distributes rewards topic to particular phrases.
The firm has additionally launched an early-user rewards marketing campaign, providing WLFI incentives for USD1 deposits.
The timing of the launch aligns with rising institutional and regulatory engagement round stablecoins.
Earlier this month, World Liberty Financial confirmed that its trust entity filed an utility for a U.S. nationwide banking constitution with the Office of the Comptroller of the Currency.
World Liberty Financial filed for a US nationwide banking constitution, in search of OCC oversight to convey its dollar-backed stablecoin USD1 absolutely contained in the regulatory perimeter. @worldlibertyfi#WLFI #OCC https://t.co/kDgbVB1c25
— Cryptonews.com (@cryptonews) January 8, 2026
USD1 has additionally gained visibility by high-profile market exercise. In December, Binance rolled out a limited-time “USD1 Boost Program,” providing enhanced yields of as much as 20% APR on the stablecoin by its Simple Earn merchandise.
The promotion coincided with a pointy enhance in USD1’s market capitalization and adopted Binance’s decision to expand fee-free USD1 buying and selling pairs and exchange BUSD with USD1 as a main collateral asset on the trade.
Trump-linked stablecoin USD1 jumps $150M after @binance launches a large 20% yield promo, triggering a fast surge in provide and buying and selling quantity.#USD1 #Trump #binancehttps://t.co/RfH368kICC
— Cryptonews.com (@cryptonews) December 24, 2025
Binance has positioned USD1 as an integral a part of its collateral framework, additional embedding the token into the centralized buying and selling infrastructure.
The broader lending market has continued to evolve alongside these developments.
While centralized lenders nonetheless account for a big share of excellent loans, Galaxy Research knowledge exhibits that on-chain platforms now dominate new development.
CeFi lending reached $24.37 billion by the tip of September, with Tether holding almost 60% of the tracked market, however surviving centralized lenders have shifted to completely collateralized fashions and public reporting.
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