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Hassan Shittu
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World Liberty Financial, a decentralized finance project linked to the family of U.S. President Donald Trump, has entered the crypto lending market as its USD1 stablecoin climbs past $3.5 billion in circulating supply.
The project launched its lending and borrowing product, World Liberty Markets, on Monday, as stated by the company announcement.
The new web-based application allows users to lend and borrow digital assets within a single on-chain marketplace built around USD1, the platform’s U.S. dollar–backed stablecoin, and its governance token, WLFI.
Users can post collateral, including Ether, a tokenized version of Bitcoin, and major stablecoins such as USDC and USDT, with the underlying infrastructure powered by Dolomite.
On-chain Lending Rebounds as World Liberty Financial Builds on USD1 Momentum
World Liberty Financial said the launch represents the second major product rollout for the project, following the introduction of USD1 last year.
The stablecoin has grown rapidly, reaching approximately $3.48 billion in market capitalization, with the entire issued supply already in circulation.
USD1 maintains a $1 peg and is deployed across multiple blockchains, with the largest share on BNB Smart Chain at roughly 1.92 billion tokens, followed by Ethereum with about 1.31 billion.
Smaller but growing allocations exist on Solana, Aptos, Plume, Tron, and several newer networks.
The lending launch comes as on-chain credit has regained momentum after the collapses of several centralized lenders in the previous cycle.
Galaxy Research reported that crypto-collateralized lending reached an all-time high of $73.59 billion at the end of the third quarter of 2025, surpassing the 2021 peak.
DeFi lending applications accounted for $40.99 billion of that total, capturing 55.7% of the overall lending market and growing nearly 55% quarter over quarter.
Unlike the last cycle, growth has been driven by fully collateralized loans, transparent liquidation mechanisms, and on-chain risk management.
USD1’s Role Expands Across Banking and Crypto Markets
World Liberty Financial’s move places it directly into this evolving sector, where demand for borrowing against digital assets is increasing as investors seek liquidity without selling holdings.
The company said World Liberty Markets is designed to expand the utility of USD1, allowing holders to deploy the stablecoin while accessing borrowing opportunities.
Users who supply USD1 are eligible for the project’s existing points program, which distributes rewards subject to specific terms.
The company has also launched an early-user rewards campaign, offering WLFI incentives for USD1 deposits.
The timing of the launch aligns with growing institutional and regulatory engagement around stablecoins.
Earlier this month, World Liberty Financial confirmed that its trust entity filed an application for a U.S. national banking charter with the Office of the Comptroller of the Currency.
USD1 has also gained visibility through high-profile market activity. In December, Binance rolled out a limited-time “USD1 Boost Program,” offering enhanced yields of up to 20% APR on the stablecoin through its Simple Earn products.
The promotion coincided with a sharp increase in USD1’s market capitalization and followed Binance’s decision to expand fee-free USD1 trading pairs and replace BUSD with USD1 as a primary collateral asset on the exchange.
Binance has positioned USD1 as an integral part of its collateral framework, further embedding the token into the centralized trading infrastructure.
The broader lending market has continued to evolve alongside these developments.
While centralized lenders still account for a large share of outstanding loans, Galaxy Research data shows that on-chain platforms now dominate new growth.
CeFi lending reached $24.37 billion by the end of September, with Tether holding nearly 60% of the tracked market, but surviving centralized lenders have shifted to fully collateralized models and public reporting.
