Trump’s World Liberty DeFi Project Mint USD1 Token Worth $205 Million

TLDR

• World Liberty Financial mints $205 million USD1 token, boosting total supply to $2.4 billion.

• The minting follows Fed Governor Waller’s pro-stablecoin speech at a Wyoming conference.

• USD1 stablecoin now ranks as the sixth-largest with a $2.4 billion market cap.

• World Liberty’s treasury holdings hit a record high of $548 million, with USD1 as its largest asset.

World Liberty Financial, the decentralized finance (DeFi) project backed by the Trump family, has minted a substantial $205 million worth of its USD1 stablecoin. This minting represents 9% of the total USD1 supply and follows a positive speech by Federal Reserve Governor Christopher Waller, where he endorsed stablecoins as crucial to the future of global finance.

In a post on X, World Liberty announced that the minting has increased the USD1 supply to a record $2.4 billion. This marks the first significant increase in the stablecoin’s supply since April. The project aims to further solidify USD1’s position as one of the top stablecoins in the market, having already become the sixth-largest stablecoin by market capitalization.

Role of Stablecoins and Fed Support

The timing of the minting is noteworthy, as it comes just hours after Waller’s remarks at a blockchain conference in Wyoming. Waller spoke favorably about the potential for stablecoins to enhance international trade and improve retail and cross-border payments.

He highlighted that stablecoins could strengthen the U.S. dollar’s global position and extend its reach internationally.

Waller’s comments also underscored the recent passage of the GENIUS Act, which regulates stablecoins. The act was celebrated by industry leaders as a step toward legitimizing and stabilizing the growing stablecoin market. SEC Chair Paul Atkins echoed Waller’s sentiments, emphasizing the importance of the GENIUS Act for the future of the digital asset sector.

World Liberty Treasury and Crypto Holdings Surge

The recent minting has caused World Liberty’s treasury holdings to soar, reaching a new high of $548 million, according to data from Nansen. USD1 now accounts for 39% of the project’s total portfolio, with $212 million in USD1 holdings.

The next largest asset in the treasury is Aave Ethereum USDT (AETHUSDT), holding an $85 million value along with 19,650 ETH.

World Liberty’s treasury holdings have grown substantially since its inception, reinforcing the credibility of the project and its stablecoin. The project has also made headlines for its ambitions to create a publicly traded company to hold its WLFI tokens, with a fundraising target of $1.5 billion.

USD1 Stablecoin Position in the Market

Since its launch in April, USD1 has quickly climbed the ranks to become the world’s sixth-largest stablecoin by market capitalization. It now sits behind Tether (USDT), the largest stablecoin, and Circle’s USDC, which dominate the space with a 60% and 24% market share, respectively.

The minting of USD1 by World Liberty is part of the project’s strategy to capture more market share and establish itself as a key player in the stablecoin sector.

The boost to USD1’s supply comes at a time when stablecoins are seeing increasing institutional interest, especially as governments and financial regulators work on creating a regulatory framework to support and govern their use. This, coupled with the support from notable figures like Waller and Atkins, could position USD1 as a prominent asset in the growing digital finance ecosystem.

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