World Liberty Opens Lending Platform Using $3.4B Backed USD1 Stablecoin

TLDR

• World Liberty’s USD1 stablecoin now has a $3.4B market capitalization.
• USD1 is used in crypto lending with ETH, BTC, USDC, and USDT collateral.
• World Liberty applied for a national trust bank charter with the OCC.
• The lending platform supports borrowing without selling digital assets.

World Liberty Financial, a decentralized finance firm linked to the family of US President Donald Trump, has launched a new crypto lending platform called World Liberty Markets. This new platform allows users to borrow and lend digital assets while using the USD1 stablecoin as its core.

USD1 is a US dollar–backed stablecoin issued by World Liberty Financial. The token has quickly expanded and now holds a market capitalization of $3.4 billion. The lending platform uses onchain systems and risk management tools to offer services to both borrowers and lenders.

Lending Platform to Use USD1 and Major Crypto Assets

World Liberty Markets supports borrowing and lending of digital assets using USD1. Collateral options include Ether (ETH), tokenized Bitcoin (BTC), and leading stablecoins like USD Coin (USDC) and Tether (USDT). The platform operates on blockchain technology and provides a shared marketplace for lenders and borrowers.

The company’s co-founder Zak Folkman told Bloomberg that the range of accepted collateral may soon include tokenized real-world assets. He also said that the company is exploring integration with crypto exchanges, prediction markets, and real estate projects. The goal is to expand the platform’s use across different financial sectors.

Bank Charter Application Supports Stablecoin Expansion

World Liberty Financial has applied for a national trust bank charter with the Office of the Comptroller of the Currency (OCC). If approved, this charter would help USD1 gain wider use in cross-border payments and business operations. The company says the bank license would allow better support for USD1 across financial services.

The USD1 stablecoin has already seen adoption in treasury operations. The company plans to expand its role in other business sectors, using both blockchain infrastructure and regulatory compliance to do so.

Crypto Lending Sees Growth with Regulatory Improvements

Crypto lending markets are gaining attention again, especially as regulations become clearer. Many investors are now looking for ways to access liquidity without selling their digital assets. Platforms like World Liberty Markets provide that option through collateral-based lending.

Failures in earlier lending models were mostly caused by centralized control, poor transparency, and risky financial decisions. By using decentralized systems and smart contracts, newer platforms aim to prevent such failures. World Liberty’s approach emphasizes onchain risk controls and transparency.

Other companies, such as Nexo and Babylon, are also expanding in the lending space. Babylon recently raised $15 million to build Bitcoin-based lending infrastructure, showing that the demand for decentralized credit solutions is growing.

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