Trump’s World Liberty Financial Debuts Crypto Lending as USD1 Stablecoin Hits $3.5B
Summary:
World Liberty Financial, a decentralized finance (DeFi) project associated with the Trump family, has launched its crypto lending platform, World Liberty Markets. Built around its USD1 stablecoin, which has surpassed $3.5 billion in circulating supply, the platform allows users to lend and borrow digital assets such as ETH, BTC, and major stablecoins. This move aligns with the resurgence of on-chain lending, which now dominates the crypto credit market, driven by transparent, collateralized mechanisms.
What This Means for You:
- Access to decentralized lending and borrowing opportunities with increased transparency and security.
- Earn rewards by supplying USD1 or other supported assets, leveraging the platform’s points program.
- Explore borrowing against your crypto portfolio without selling assets, maintaining exposure to potential price appreciation.
- Monitor regulatory developments as World Liberty Financial seeks a U.S. banking charter, potentially impacting USD1’s stability and adoption.
Original Post:
World Liberty Financial, a decentralized finance project linked to the family of U.S. President Donald Trump, has entered the crypto lending market as its USD1 stablecoin climbs past $3.5 billion in circulating supply.
The project launched its lending and borrowing product, World Liberty Markets, on Monday, as stated by the company announcement.
The new web-based application allows users to lend and borrow digital assets within a single on-chain marketplace built around USD1, the platform’s U.S. dollar–backed stablecoin, and its governance token, WLFI.
Users can post collateral, including Ether, a tokenized version of Bitcoin, and major 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 said the launch represents the second major product rollout for the project, following the introduction of USD1 last year.
The stablecoin has grown rapidly, reaching approximately $3.48 billion in market capitalization, with the entire issued supply already in circulation.
USD1 maintains a $1 peg and is deployed across multiple blockchains, with the largest share on BNB Smart Chain at roughly 1.92 billion tokens, followed by Ethereum with about 1.31 billion.
Smaller but growing allocations exist on Solana, Aptos, Plume, Tron, and several newer networks.
The lending launch comes as on-chain credit has regained momentum after the collapses of several centralized lenders in the previous cycle.
Galaxy Research reported that crypto-collateralized lending reached an all-time high of $73.59 billion at the end of the third quarter of 2025, surpassing the 2021 peak.
DeFi lending applications accounted for $40.99 billion of that total, capturing 55.7% of the overall lending market and growing nearly 55% quarter over quarter.
Unlike the last cycle, growth has been driven by fully collateralized loans, transparent liquidation mechanisms, and on-chain risk management.
USD1’s Role Expands Across Banking and Crypto Markets
World Liberty Financial’s move places it directly into this evolving sector, where demand for borrowing against digital assets is increasing as investors seek liquidity without selling holdings.
The company said World Liberty Markets is designed to expand the utility of USD1, allowing holders to deploy the stablecoin while accessing borrowing opportunities.
Users who supply USD1 are eligible for the project’s existing points program, which distributes rewards subject to specific terms.
The company has also launched an early-user rewards campaign, offering WLFI incentives for USD1 deposits.
The timing of the launch aligns with growing institutional and regulatory engagement around stablecoins.
Earlier this month, World Liberty Financial confirmed that its trust entity filed an application for a U.S. national banking charter with the Office of the Comptroller of the Currency.
USD1 has also gained visibility through high-profile market activity. In December, Binance rolled out a limited-time “USD1 Boost Program,” offering enhanced yields of up to 20% APR on the stablecoin through its Simple Earn products.
The promotion coincided with a sharp increase in USD1’s market capitalization and followed Binance’s decision to expand fee-free USD1 trading pairs and replace BUSD with USD1 as a primary collateral asset on the exchange.
Binance has positioned USD1 as an integral part of its collateral framework, further embedding the token into the centralized trading infrastructure.
The broader lending market has continued to evolve alongside these developments.
While centralized lenders still account for a large share of outstanding loans, Galaxy Research data shows that on-chain platforms now dominate new growth.
CeFi lending reached $24.37 billion by the end of September, with Tether holding nearly 60% of the tracked market, but surviving centralized lenders have shifted to fully collateralized models and public reporting.
The post Trump’s World Liberty Financial Debuts Crypto Lending as USD1 Stablecoin Hits $3.5B appeared first on Cryptonews.
Extra Information:
Explore more about USD1’s market performance on DefiLlama and Galaxy Research’s insights on crypto lending trends.
People Also Ask About:
- What is USD1? USD1 is a U.S. dollar-backed stablecoin launched by World Liberty Financial.
- How does World Liberty Markets work? It’s a decentralized lending platform allowing users to borrow and lend digital assets using USD1 and other cryptocurrencies as collateral.
- Is USD1 regulated? World Liberty Financial has applied for a U.S. banking charter, aiming to bring USD1 under regulatory oversight.
- What assets can I use on World Liberty Markets? Supported assets include ETH, BTC, USDC, USDT, and WLFI.
- Can I earn rewards with USD1? Yes, users supplying USD1 can participate in rewards programs and earn points.
Expert Opinion:
The launch of World Liberty Markets underscores the growing institutional interest in decentralized finance. With USD1’s rapid adoption and regulatory advancements, World Liberty Financial is positioning itself as a key player in the evolving crypto lending landscape.
Key Terms:
- Decentralized Finance (DeFi)
- US dollar-backed stablecoin
- Crypto lending and borrowing
- On-chain collateralized loans
- Regulatory compliance for stablecoins
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