, backed by the Trump family, minted $205M in USD1 stablecoin, lifting its supply to $2.4B. The expansion comes amid supportive U.S. regulatory signals and a record $548M treasury.){kind=link}
World Liberty Financial (WLFI), a decentralized finance project owned by the Trump family, has minted a whopping $205 million USD1 stablecoin.
The minting was revealed on Thursday via the project’s X account, and is notable as the first substantive supply increase of the token since late April.
This brings the current circulating supply of USD1 to a significant $2.4 billion.
According to DefiLama, USD1 launched in April and is now the sixth-largest stablecoin by market capitalization, behind leaders like Tether ($167 billion market cap) and Circle’s USDC ($67.4 billion market cap).
Federal Reserve and SEC Support Fuel Optimism Around Stablecoins
Following WLFI’s minting, Federal Reserve Governor Christopher Waller recently gave a speech in which he expressed optimism for the stablecoin market.
At a blockchain conference in Wyoming, Waller suggested that stablecoins could extend the global use of the U.S. dollar, and enhance retail payments and cross-border payments.
He mentioned the GENIUS Act, which was signed into law a month ago, as a potentially game-changing regulatory milestone that could incentivize the payment stablecoin market.
His comments echoed SEC Chair Paul Atkins, who had just called the law a “seminal step” for U.S. crypto regulation, a few days earlier.
Overall, the synchronized regulatory messaging appears to have created some bullishness around projects like WLFI’s USD1.
WLFI Treasury Holdings Reach Record Levels
The new minting has sharply increased WLFI’s reserves. According to blockchain analytics platform Nansen, the project’s treasury now stands at an all-time high of $548 million.
USD1 is the largest holding in the treasury at $212 million, accounting for 39% of the portfolio.
The other major holdings in the project are $85M Aave Ethereum USDT (AETHUSDT), and about $85M in Ether, with a total of 19,650 ETH.
In total, the stats provide context to WLFI’s rising financial strength and perfectly position this capitalized project in a quickly changing stablecoin space.
Also Read: KernelDAO Partners with WLFI to Transform USD1 into a Re-Pledgeable Asset for Enhanced DeFi Utility
Plans for Expansion Through Public Listing and Fundraising
Aside from its stablecoin issuance, WLFI (the parent company of USD1) is developing larger financial strategies for its market penetration.
Reports earlier this month say that the family related to President Donald Trump is considering a publicly traded company built to hold its WLFI tokens (including USD1).
The company would look to raise as much as $1.5 billion, which could make WLFI one of the most ambitious DeFi projects associated with a legacy financial business, UnoCrypto reported.
This type of strategy could merge decentralized finance with access to legacy markets and begin to add credibility and liquidity to the stablecoin known as USD1.
Also Read: Alchemy Pay Integrates Trump Family Backed WLFI Stablecoin USD1 For Easy Access To Crypto Payments
Recent Developments Support USD1 Ecosystem
Besides growing treasury and momentum in regulation, WLFI has focused on expanding the utility of USD1.
On August 7, UnoCrypto reported that USD1 announced the launch of a loyalty program with various exchanges such as Bitget, HTX, and Gate.io, to reward users for holding, trading, staking, and using USD1.
Just days later, on August 19th, we reported that USD1 was integrated into the JustLend DAO to lend, borrow, and yield farm.
With reserves held by BitGo Trust, the stablecoin surpassed a supply of $2 billion during the launch of the platform interoperating with USD1.
In concert, these developments are positively impacting USD1’s early adoption in the larger DeFi ecosystem and making it a competitor in the global stablecoin game.
Also Read: ALT5 SIGMA Announces Major $1.5B Private Placement To Purchase Trump-Backed WLFI Tokens