TL;DR
- World Liberty Financial, the Trump-linked DeFi platform, minted $205 million in USD1 stablecoins, pushing its total supply to $2.4 billion.
- The move follows supportive remarks from a Federal Reserve governor on stablecoins’ potential in payments and global finance.
- Treasury Secretary Scott Bessent is exploring the role of major stablecoins as future buyers of U.S. government debt, signaling growing institutional recognition and expanding broader digital asset adoption.
World Liberty Financial, the DeFi project affiliated with the Trump family, minted $205 million in USD1 stablecoins on August 20, marking the token’s largest supply increase since April. The issuance brings the stablecoin’s total supply to $2.4 billion, positioning USD1 as the sixth-largest stablecoin by market capitalization.
The mint coincided with a pro-crypto speech from Federal Reserve Governor Christopher Waller, highlighting the potential of stablecoins to strengthen the U.S. dollar’s international role and improve payment efficiency globally and securely.
Stablecoin Supply Growth Coincides With Regulatory Support
Waller spoke at a blockchain symposium in Wyoming, emphasizing that stablecoins could enhance retail and cross-border payment systems. He also pointed to the GENIUS Act, recently enacted, as a milestone for payment-focused stablecoins. Following these remarks, USD1’s treasury holdings surged, reflecting growing confidence in institutional backing for regulated digital dollars. Arkham and Nansen analytics show that World Liberty Financial’s crypto portfolio now totals $548 million, with USD1 representing $212 million, or roughly 39% of its total holdings.
Treasury Explores Stablecoins As U.S. Debt Buyers
The expansion of USD1 aligns with Treasury Secretary Scott Bessent’s initiatives to integrate stablecoins into U.S. public finance. Officials have discussed leveraging reserves from major stablecoins such as USDT, USDC, and USD1 to support government debt issuance. Analysts note that stablecoins could increasingly act as alternative sources of demand for Treasuries, particularly as the national debt climbs toward historic levels. This strategy reflects a broader recognition of digital assets as a complementary tool to traditional financial instruments and practices.
World Liberty Financial has also announced plans to create a publicly traded entity holding WLFI tokens, aiming to raise $1.5 billion. The initiative is part of the platform’s strategy to strengthen its market presence and expand its treasury-backed stablecoin ecosystem. Market observers highlight that such moves could elevate USD1 among the top stablecoins globally, challenging long-established players like Tether and Circle.
With regulatory signals growing more favorable and institutional interest rising, World Liberty Financial’s USD1 expansion may mark a turning point in stablecoin adoption, integrating them more closely with mainstream finance while maintaining decentralized principles responsibly and efficiently.
