WLFI Expands USD1 Stablecoin to AB Chain for Enhanced DeFi Liquidity

World Liberty Financial (WLFI) has deployed its USD1 stablecoin on AB Chain, a move aimed at leveraging the network's high throughput for faster settlements and deeper DeFi liquidity. This integration, developed in collaboration with the AB Chain team, allows users to transact with the dollar-pegged asset using AB's underlying architecture.

USD1, first launched in March 2025, is fully backed 1:1 by U.S. dollars and government money market funds, with monthly attestation reports. It has grown to a market capitalization of $2.81 billion and is available on major exchanges like Binance and Bybit, as well as decentralized protocols such as Uniswap and PancakeSwap.

The partnership further enriches AB Chain's ecosystem, with the native AB Wallet planning to support zero-fee USD1 transfers and exploring future yield-generating services. This deployment follows WLFI's recent integrations, including the StableStocks ecosystem for trading tokenized U.S. stocks and ETFs, and a points program on the Dolomite protocol to incentivize USD1 supply.

However, WLFI's rapid growth has been complicated by allegations of frozen investor funds. Ethereum developer Bruno Skvorc claimed his tokens were locked after his wallet was labeled high risk, calling it theft and a mafia-style setup. Tron founder Justin Sun revealed his $75 million stake was frozen, deeming the action unreasonable. Blockchain analyst ZachXBT suggested automated compliance systems, possibly triggered by interactions with platforms like Tornado Cash, may be responsible.