World Liberty Financial (WLFI), once known for its Trump-era branding, is now advancing its USD1 stablecoin into institutional-grade decentralized finance through a strategic partnership with Re7 Labs, the DeFi infrastructure arm of Re7 Capital. This collaboration focuses on deploying USD1 on the BNB Chain using a curated vault strategy designed by Re7, leveraging their $600 million risk-reviewed DeFi infrastructure to underpin the stablecoin's rollout.
The USD1 stablecoin recently surpassed $2 billion in circulation, signaling a pivot from its political origins towards structured, institution-friendly DeFi solutions. With the partnership, WLFI and Re7 Labs aim to build robust stablecoin rails that ensure security, composability, and real-time transparency, fulfilling the requirements of institutional investors.
Re7’s vaults on Euler and Lista protocols, where USD1 will be deployed, are structured to meet traditional finance (TradFi) risk standards. Chainlink’s Proof of Reserve and BitGo’s custody services back this infrastructure, ensuring operational rigor and transparency. Uniquely, USD1 moves natively across different blockchain ecosystems via Chainlink’s CCIP, positioning BNB Chain as a hub facilitating cross-chain liquidity bridging with Ethereum, Solana, and more.
The partnership follows WLFI’s recent $100 million governance token acquisition deal with UAE-based Aqua 1, which offers compliance expertise for navigating the regulatory landscape in the Middle East and North Africa region, enhancing USD1’s regulatory and operational foundation.
Additionally, the partnership strengthens USD1’s position in the DeFi sector by attracting significant institutional interest and increased liquidity on Binance’s BNB Chain, aligning with broader market trends of growing adoption and integration of stablecoins in institutional digital finance.