World Liberty Financial Launches Crypto Lending as USD1 Stablecoin Surpasses $3.5B

World Liberty Financial, a decentralized finance initiative affiliated with the family of former U.S. President Donald Trump, has made its entry into the crypto lending sphere. This development comes as its USD1 stablecoin sees its circulating supply surpassing $3.5 billion.

Key Takeaways

World Liberty Financial has debuted a crypto lending platform, World Liberty Markets, as its USD1 stablecoin surpasses a $3.5 billion market cap.
The USD1 stablecoin maintains its peg to the U.S. dollar and is available on multiple blockchains, with a notable presence on BNB Smart Chain and Ethereum.
The on-chain lending market has seen a surge in growth, boosted by increased demand for collateralized loans and transparent risk management.
The launch coincides with heightened institutional interest in stablecoins, with World Liberty Financial pursuing a U.S. national banking charter.

The company announced the launch of World Liberty Markets, its new lending and borrowing platform, on Monday.

The web application enables users to lend and borrow digital assets within a unified on-chain marketplace, centered around USD1, the platform’s U.S. dollar-backed stablecoin, as well as its governance token, WLFI.

Participants can provide collateral, which may include Ether, a tokenized version of Bitcoin, and major stablecoins like USDC and USDT. The platform’s infrastructure is supported by Dolomite.

On-chain Lending Gains Traction with World Liberty Financial

World Liberty Financial's recent launch signifies its second major product rollout since the introduction of the USD1 stablecoin last year.

The stablecoin has experienced rapid growth, achieving a market capitalization of approximately $3.48 billion, with all issued tokens already circulating.

USD1 Stablecoin

USD1 maintains a solid $1 peg and is utilized across various blockchains. It enjoys the largest circulation on BNB Smart Chain, with around 1.92 billion tokens, followed by approximately 1.31 billion on Ethereum. Additional smaller allocations are growing on networks such as Solana, Aptos, Plume, and Tron.

This lending initiative arrives at a time when on-chain credit has regained momentum following the collapses of several centralized lenders in the past cycle.

According to Galaxy Research, crypto-collateralized lending surged to an all-time high of $73.59 billion by the end of the third quarter of 2025, exceeding the 2021 peak.

Lending Statistics

DeFi lending platforms accounted for $40.99 billion of that total, claiming 55.7% of the overall lending market and marking a nearly 55% increase quarter-over-quarter.

In contrast to previous cycles, current growth is being spurred by fully collateralized loans, transparent liquidation procedures, and effective on-chain risk management.

USD1’s Growing Influence in Banking and Crypto Sectors

World Liberty Financial's move positions it prominently in an evolving sector, where there is a rising demand to borrow against digital assets, allowing investors to maintain their holdings while accessing liquidity.

The company stated that World Liberty Markets aims to broaden the use cases for USD1, enabling holders to leverage the stablecoin while taking advantage of borrowing opportunities.

Users who deposit USD1 into the platform can participate in an existing rewards program, earning points based on specific criteria.

Additionally, the company has introduced an early-user rewards initiative, providing WLFI incentives for USD1 deposits.

The launch coincides with increasing institutional interest and regulatory developments surrounding stablecoins. Earlier this month, World Liberty Financial confirmed that its trust entity applied for a U.S. national banking charter through the Office of the Comptroller of the Currency.

USD1 has gained increased attention through significant market activities. In December, Binance initiated a limited-time “USD1 Boost Program,” offering enhanced yields of up to 20% APR on the stablecoin via its Simple Earn products.

This promotion paralleled a substantial rise in USD1’s market capitalization and followed Binance’s decision to replace BUSD with USD1 as a primary collateral asset on its platform, further integrating USD1 into its trading ecosystem.

The broader lending landscape continues to adapt alongside these changes.

Although centralized lenders still represent a large portion of outstanding loans, data from Galaxy Research indicates that on-chain platforms are now leading the way in new growth.

Lending Landscape

By the end of September, CeFi lending reached $24.37 billion, with Tether holding nearly 60% of the tracked market. In response, surviving centralized lenders have transitioned to fully collateralized models and transparent reporting.

This revised article offers a clear and accessible overview of World Liberty Financial's developments and the current state of the crypto lending market, making it suitable for newcomers to cryptocurrency and blockchain technology.