Trump-linked World Liberty launches crypto lending platform, expanding USD1 stablecoin usage amid rising onchain credit demand.
World Liberty Financial has entered the crypto lending market as onchain credit demand shows renewed momentum. The launch reflects improving regulatory clarity throughout digital asset markets. Moreover, the move adds real-world use for the project’s increasingly large ecosystem of stablecoins.
World Liberty Launches Crypto Lending Platform Built Around USD1
According to Bloomberg, World Liberty Markets started on Monday as a web-based onchain lending platform. Consequently, the users can borrow and lend digital assets in a single marketplace. The service is based on USD1, the firm’s US dollar-backed stablecoin.
World Liberty Financial is a family of Miami-based crypto startup associated with President Donald Trump’s family. Notably, the firm has Trump as “co-founder emeritus” in project disclosures. Therefore, the launch has attracted a lot of market and political attention.
Related Reading: Crypto News: WLFI Moves Toward U.S. Trust Bank Status for USD1 Stablecoin| Live Bitcoin News
The platform also integrates World Liberty’s governance token – WLFI, along with major crypto assets. Collateral supported: Ether, tokenized Bitcoin, USDC, and USDT. Meanwhile, infrastructure support is offered by onchain protocol Dolomite.
Importantly, users can post collateral and access liquidity without having to leave the platform. As a result, the marketplace is aimed at streamlining the process of borrowing and lending activity. This design is part of wider trends towards integrated DeFi services.
World Liberty said the launch is its second major rollout of products. In the previous year, the firm came out with USD1. Since then, the stablecoin has exploded throughout crypto markets.
Based on project data, USD1 has grown to approximately $3.48 billion in market capitalization. Moreover, the total supply issued is in circulation. This scale puts USD1 into the list of the largest dollar-pegged stablecoins.
Onchain Credit Rebounds as World Liberty Expands Regulated Ambitions
The lending launch is happening as part of a broader recovery in on-chain credit activity. Therefore, there is an increasing demand by market participants for transparent and collateralized lending options. Analysts see this trend as a reaction to better signals from regulators.
World Liberty confirmed support of Lending and Borrowing WLFI and USD1 Tokens. Additionally, Ether, cbBTC, USDC, and USDT are available for use as collateral. Over time, additional assets might be added.
Co-founder Zak Folkman told Bloomberg that future collateral can be tokenized real-world assets. Furthermore, the firm is looking into a collaboration with exchanges and prediction markets. These integrations are intended to increase the utility of the platforms.
Regulatory alignment is a central area of strategy in the industry. Last week, World Liberty applied for a national trust bank charter. The application was filed with the US Office of the Comptroller of the Currency.
As a result, the firm wants to more closely integrate with regulated financial infrastructure. This strategy might make the difference between World Liberty and purely decentralized competitors. It could also get institutional interest.
The company also plans on releasing a mobile application later this year. Therefore, access to on-chain lending services could increase dramatically. Management believes that usability improvements will drive adoption.
But ownership structure still attracts criticism. World Liberty is owned in the majority by a Trump business entity. That entity reportedly gets a large portion of the revenues from token sales.
Overall, the idea behind the lending platform is to increase USD1’s real-world use. By using the ability to borrow and lend, World Liberty strengthens its stablecoin ecosystem. And, ultimately, the launch highlights growing institutional and retail interest in regulatory crypto lending.
Source: https://www.livebitcoinnews.com/trump-linked-world-liberty-enters-crypto-lending-market/
