World Liberty Financial (WLFI), the DeFi project backed by the Trump family, has minted $205 million worth of its USD1 stablecoin, bringing the total supply to $2.4 billion. This represents approximately 9% of all USD1 in circulation and solidifies its position as the sixth-largest stablecoin by market capitalization, trailing only major players like USDT and USDC.
The timing of the mint is significant, coming just hours after Federal Reserve Governor Christopher Waller delivered a pro-stablecoin speech at a Wyoming blockchain conference. Waller emphasized that stablecoins could enhance international trade, improve cross-border payments, and strengthen the U.S. dollar's global role. His comments were echoed by SEC Chair Paul Atkins, who highlighted the importance of the recently passed GENIUS Act for stablecoin regulation.
WLFI's treasury holdings have surged to a record $548 million, with USD1 itself constituting $212 million (39% of the portfolio). The remainder includes significant DeFi positions such as Aave's ETH-USDT pool and nearly 20,000 ETH. The treasury is actively deployed to provide liquidity, support staking rewards, fund developer grants, and enable real-world asset tokenization projects.
Institutional adoption of USD1 is growing, evidenced by its use in settling over $200 million in IPO proceeds for NYSE:BLSH alongside USDC and PYUSD. Integration into platforms like JustLend DAO (offering up to 72.9% APY for USD1 borrowing) and Vaulta's Web3 infrastructure further expands its utility.
However, cautionary notes exist. On-chain analytics show WLFI transferred $20 million of USD1 to exchanges ahead of a token unlock, coinciding with a minor price dip. Regulatory uncertainty also persists, with the SEC investigating some of WLFI's partners, such as ALT5 Sigma.