World Liberty Financial (WLFI), the crypto project affiliated with former U.S. President Donald Trump, has undertaken a significant move to bolster its stablecoin, USD1, by minting a substantial portion for its treasury. This strategic action highlights WLFI’s ambition to accelerate USD1’s market penetration and establish it as a leading contender in the stablecoin ecosystem.
Strategic Treasury Expansion
WLFI recently minted $205 million of its USD1 stablecoin directly into its treasury, a sum representing approximately 10% of the stablecoin’s total supply. This key transaction, confirmed to have occurred on the Ethereum blockchain, elevated USD1’s total market capitalization to $2.4 billion, securing its position as the sixth-largest stablecoin by market cap. WLFI emphasizes that USD1 is a rapidly growing asset, backed 1:1 by both U.S. dollars and U.S. Treasuries. The stablecoin's total supply is notably distributed across the BNB Chain, Ethereum, and Tron networks.
Driving Adoption and Market Utility
In tandem with this large-scale minting, WLFI has launched the USD1 Points Program, an initiative designed to incentivize users who actively contribute to the stablecoin’s adoption across various exchanges. This program aims to directly reward individuals for driving growth, a feature WLFI notes is often missing in the broader stablecoin market. Beyond these user-focused incentives, USD1 has already demonstrated significant utility within the institutional sphere. It has been notably utilized in high-profile transactions, including the settlement of a $2 billion investment in Binance and the handling of proceeds for the Bullish Exchange's IPO, underscoring its growing acceptance among major market participants.
