World Liberty Proposes Using 5% of Treasury to Boost USD1 Stablecoin Adoption

• World Liberty is proposing to set aside about $120 million from its treasury to push wider use of the stablecoin across exchanges and DeFi platforms.
• Bitcoin market strength is supporting stablecoin demand.

World Liberty Financial has proposed using 5% of its WLFI token treasury, worth roughly $120 million, to expand adoption of its USD1 stablecoin across centralized exchanges and decentralized finance platforms.

The proposal was posted to the project’s governance forum, where the team said increasing USD1’s circulation is needed to compete in a crowded stablecoin market. According to the proposal, the funds would be for integrations, liquidity incentives, and partnerships which aimed at expanding usage across select CeFi and DeFi platforms.

The proposal states:

World Liberty Financial’s WLFI token began trading in September. Prior disclosures show 19.96 billion WLFI tokens were allocated to the treasury, which at current prices are valued at nearly $2.4 billion, making the proposed allocation equivalent to about $120 million.

Stablecoin Adoption Gains Momentum

As we highlighted about USD1 launched on Ethereum and BNB Chain earlier this year to enhance cross-chain liquidity and adoption. With a market capitalization of approximately $2.74 billion, the stablecoin currently ranks as the seventh-largest USD-pegged stablecoin. It continues to trail competitors such as PayPal’s PYUSD, which holds a market cap more than $1 billion higher.

In its most recent tweet, World Liberty Financial reported that the new governance proposal is now live, asking the community to approve the use of a portion of the unlocked WLFI treasury as incentives to support adoption.

The update further added that over the past three weeks the project repurchased $10 million worth of WLFI using USD1, secured major spot trading pairs on Binance, expanded usage across centralized and decentralized platforms, and advanced toward finalizing the WLFI token unlock schedule.

Bitcoin Signals Emphasize Stablecoin Usage

Bitcoin continues to influence stablecoin activity across crypto markets. Periods of rising Bitcoin prices have historically coincided with increased use of dollar-pegged assets for trading, settlement, and liquidity management across exchanges and DeFi platforms.

As of press time, Bitcoin (BTC) was trading at the price of $87,243.57, with an increase of 0.19% over the past 24 hours, though down 3.31% over the past week. See BTC price chart below.