World Liberty Monetary, a decentralized finance undertaking linked to the household of U.S. President Donald Trump, has entered the crypto lending market as its USD1 stablecoin climbs previous $3.5 billion in circulating provide.
The undertaking launched its lending and borrowing product, World Liberty Markets, on Monday, as acknowledged by the corporate announcement.
World Liberty Markets is now reside, constructed to provide customers entry to clear, high-performance liquidity markets supplied by @dolomite_io. You possibly can earn on equipped belongings or borrow in opposition to your portfolio with quick, versatile liquidity. WLFI Markets is designed to make these instruments…
— WLFI (@worldlibertyfi) January 12, 2026
The brand new web-based software permits customers to lend and borrow digital belongings inside a single on-chain market constructed round USD1, the platform’s U.S. greenback–backed stablecoin, and its governance token, WLFI.
Customers can publish collateral, together with Ether, a tokenized model of Bitcoin, and main stablecoins corresponding to USDC and USDT, with the underlying infrastructure powered by Dolomite.
On-chain Lending Rebounds as World Liberty Monetary Builds on USD1 Momentum
World Liberty Monetary mentioned the launch represents the second main product rollout for the undertaking, following the introduction of USD1 final yr.
The stablecoin has grown quickly, reaching roughly $3.48 billion in market capitalization, with all the issued provide already in circulation.
USD1 maintains a $1 peg and is deployed throughout a number of blockchains, with the biggest share on BNB Sensible Chain at roughly 1.92 billion tokens, adopted by Ethereum with about 1.31 billion.
Smaller however rising allocations exist on Solana, Aptos, Plume, Tron, and a number of other newer networks.
The lending launch comes as on-chain credit score has regained momentum after the collapses of a number of centralized lenders within the earlier cycle.
Galaxy Analysis reported that crypto-collateralized lending reached an all-time excessive of $73.59 billion on the finish of the third quarter of 2025, surpassing the 2021 peak.
DeFi lending purposes accounted for $40.99 billion of that whole, capturing 55.7% of the general lending market and rising practically 55% quarter over quarter.
Not like the final cycle, development has been pushed by totally collateralized loans, clear liquidation mechanisms, and on-chain danger administration.
USD1’s Function Expands Throughout Banking and Crypto Markets
World Liberty Monetary’s transfer locations it instantly into this evolving sector, the place demand for borrowing in opposition to digital belongings is growing as buyers search liquidity with out promoting holdings.
The corporate mentioned World Liberty Markets is designed to increase the utility of USD1, permitting holders to deploy the stablecoin whereas accessing borrowing alternatives.
Customers who provide USD1 are eligible for the undertaking’s current factors program, which distributes rewards topic to particular phrases.
The corporate has additionally launched an early-user rewards marketing campaign, providing WLFI incentives for USD1 deposits.
Alongside USD1, customers also can provide WLFI, ETH, cbBTC, USDC, and USDT to earn or unlock borrowing via Dolomite.
Deposits by the WLFI Basis Treasury are ineligible for rewards. The whole lot goes to the true customers contributing to quick, versatile USD1 liquidity markets…— WLFI (@worldlibertyfi) January 12, 2026
The timing of the launch aligns with rising institutional and regulatory engagement round stablecoins.
Earlier this month, World Liberty Monetary confirmed that its belief entity filed an software for a U.S. nationwide banking constitution with the Workplace of the Comptroller of the Forex.
World Liberty Monetary filed for a US nationwide banking constitution, searching for OCC oversight to carry its dollar-backed stablecoin USD1 totally contained in the regulatory perimeter. @worldlibertyfi#WLFI #OCC https://t.co/kDgbVB1c25
— Cryptonews.com (@cryptonews) January 8, 2026
USD1 has additionally gained visibility via high-profile market exercise. In December, Binance rolled out a limited-time “USD1 Enhance Program,” providing enhanced yields of as much as 20% APR on the stablecoin via its Easy Earn merchandise.
The promotion coincided with a pointy enhance in USD1’s market capitalization and adopted Binance’s choice to increase fee-free USD1 buying and selling pairs and substitute BUSD with USD1 as a main collateral asset on the change.
Trump-linked stablecoin USD1 jumps $150M after @binance launches an enormous 20% yield promo, triggering a fast surge in provide and buying and selling quantity.#USD1 #Trump #binancehttps://t.co/RfH368kICC
— Cryptonews.com (@cryptonews) December 24, 2025
Binance has positioned USD1 as an integral a part of its collateral framework, additional embedding the token into the centralized buying and selling infrastructure.
The broader lending market has continued to evolve alongside these developments.
Whereas centralized lenders nonetheless account for a big share of excellent loans, Galaxy Analysis knowledge exhibits that on-chain platforms now dominate new development.
CeFi lending reached $24.37 billion by the top of September, with Tether holding practically 60% of the tracked market, however surviving centralized lenders have shifted to totally collateralized fashions and public reporting.
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