Trump-Backed World Liberty Expands Stablecoin Lending Market
- World Liberty Financial launched a DeFi lending platform supporting USD1 and crypto assets.
- Early deposits reached $20 million as USD1 incentives drove strong user participation.
- The rollout expands USD1 utility while WLFI governance guides future assets and changes.
World Liberty Financial has launched a new crypto lending and borrowing platform as competition intensifies across on-chain credit markets. The decentralized finance firm announced the rollout of World Liberty Markets on Monday. The platform allows users to lend and borrow digital assets using on-chain infrastructure.
World Liberty Financial confirmed the service supports its USD1 stablecoin alongside major cryptocurrencies. Users can lend or borrow USD1, Ethereum, Bitcoin, and several widely used stablecoins. The company said the launch marks a major expansion of its decentralized finance offerings.
The platform operates through a web-based application at launch. However, the firm plans future integration with the WLFI mobile app. World Liberty Financial said user governance will shape future upgrades.
Lending Platform Gains Early Activity
World Liberty Markets runs on the multi-chain decentralized exchange protocol Dolomite. The system enables users to earn yield by supplying assets or borrow against existing holdings. Supported assets include WLFI, USD1, USDC, USDT, ETH, and Coinbase’s wrapped Bitcoin cbBTC.
Shortly after launch, the platform recorded around $20 million in supplied assets. USD1 accounted for most of the early deposits. The stablecoin currently offers a 27% incentive rate for liquidity providers.
Users who supply at least $1,000 in USD1 also earn USD1 rewards points. World Liberty Financial said these incentives aim to boost stablecoin adoption. The firm views USD1 as a core pillar of its ecosystem.
Co-founder and chief operating officer Zak Folkman commented on the milestone. He said the company began building USD1 to compete with leading stablecoins. Folkman stated USD1 exceeded internal growth expectations within one year.
He added that the lending platform expands how users deploy their stablecoins. Folkman described World Liberty Markets as the first of several planned products. The company plans additional launches over the next 18 months.
World Liberty Financial stated the platform supports tokenized finance development. The firm aims to offer access to third-party and WLFI-branded real-world asset products. It also plans support for new tokenized assets as they enter markets.
Stablecoin Growth and Governance Plans
World Liberty Financial launched the USD1 stablecoin across multiple blockchains in March last year. Since then, the token has grown into the seventh-largest stablecoin by supply. DeFiLlama data places USD1 circulation above $3.4 billion.
The company said the lending platform expands USD1 utility across WLFI applications. It also supports the firm’s broader real-world asset roadmap. Governance decisions will guide asset additions and incentive changes.
WLFI token holders can vote on protocol updates through decentralized governance. The firm said community input will determine long-term platform direction. This structure aligns with broader DeFi governance models.
Related: Trump-linked World Liberty Applies for U.S. National Bank
World Liberty Financial launched its native governance token WLFI in September. The token traded just under $0.17 at last check. Market data showed a 1.2% gain over the past 24 hours. WLFI has risen around 18% during the past two weeks. However, the token remains about 49% below its all-time high. The previous peak price reached $0.33.
The company continues to draw attention due to its political connections. President Donald J. Trump holds the title of Co-Founder Emeritus. His sons Eric, Don Jr., and Barron appear on the firm’s team page.
Last year, the Trump family reduced its ownership stake in the company. Nevertheless, the family maintains a visible association with the project. Lawmakers and critics have scrutinized these ties.
Last week, World Liberty Financial applied for a national bank charter. The application went to the U.S. Office of the Comptroller of the Currency. The firm joined crypto companies Circle and Ripple, which gained approval in December.
