World Liberty Financial Launches Lending & Borrowing on USD1 Stablecoin

World Liberty Financial—the Trump-backed crypto project—has launched its first lending and borrowing product, World Liberty Markets, powered by Dolomite and centered on its USD1 stablecoin.

The platform allows users to lend and borrow digital assets using USD1 as primary collateral alongside ether, USDC, USDT, and tokenized bitcoin, marking the second major product rollout after USD1’s March 2025 debut. With USD1’s market capitalization now approaching $3.5 billion—placing it just behind PayPal’s PYUSD among dollar-backed stablecoins—this move positions World Liberty Financial as a growing player in regulated DeFi credit infrastructure. The timing also aligns with the project’s ongoing application for a national trust bank charter from the OCC, which would bring USD1 issuance, custody, and conversion under full federal supervision if approved.

(Sources: the block)

This analyst insight examines the World Liberty Markets launch, USD1’s rapid growth, the project’s regulatory strategy, conflict-of-interest concerns tied to the Trump family, and the broader context of crypto credit market recovery in early 2026.

World Liberty Markets: Key Features and Infrastructure

The new platform enables:

• Lending of USD1 and other supported assets to earn yield.
• Borrowing against USD1, ETH, USDC, USDT, or tokenized BTC collateral.
• No-fee issuance/redemption and fiat on/off-ramps (at launch).
• Market-rate custody and conversion services for USD1 and select stablecoins.

Built on Dolomite’s lending protocol (a competitor to Aave), the product targets institutional clients including exchanges, investment firms, and corporations seeking compliant crypto credit exposure.

• Core Collateral: USD1 as primary asset.
• Additional Assets: ETH, USDC, USDT, tokenized BTC.
• Infrastructure Partner: Dolomite for secure, regulated lending rails.
• Compliance Focus: Designed to operate under future OCC trust bank supervision.

USD1 Growth: From Launch to Near-$3.5 Billion Market Cap

USD1, Ripple’s dollar-backed stablecoin, has grown faster than any other stablecoin in its first year, according to project statements. Current market capitalization sits just below $3.5 billion (per The Block data), placing it second only to PayPal’s PYUSD among major USD-pegged tokens.

The Trump crypto stablecoin has already seen institutional adoption in cross-border payments, settlement, and treasury operations, with the lending rollout expected to further increase on-chain utility and velocity.

• Market Cap: ~$3.5 billion.
• Ranking: Second-largest dollar-backed stablecoin.
• Growth Narrative: Fastest first-year adoption in stablecoin history.
• Use Cases: Payments, settlement, treasury management.

Regulatory Strategy: National Trust Bank Charter Application

Last week, an affiliated entity filed a de novo application with the Office of the Comptroller of the Currency (OCC) to establish World Liberty Trust Company, National Association—a crypto national trust bank focused exclusively on stablecoin operations.

If approved, the charter would:

• Enable nationwide operations without state-by-state licensing.
• Provide federal oversight for issuance, custody, and conversion.
• Implement strict AML, sanctions screening, and cybersecurity standards.
• Segregate customer assets with independent reserve management.

The application follows the OCC’s December 2025 conditional approvals for Circle, Ripple, Fidelity Digital Assets, BitGo, and Paxos, reflecting the regulator’s willingness to charter digital asset-focused trust banks under rigorous standards.

• Proposed Services: USD1 issuance/redemption, fiat ramps, custody/conversion.
• Leadership: Zach Witkoff (proposed President/Chairman), Mack McCain (Trust Officer).
• Compliance Commitment: Full adherence to GENIUS Act and federal supervision.

Conflict-of-Interest Concerns Surrounding Trump-Backed Crypto Project

World Liberty Financial lists Donald Trump and his sons as co-founders, a structure that has drawn increasing scrutiny. A Reuters investigation from October 2025 estimated the Trump family earned hundreds of millions from World Liberty and related token sales in the first half of 2025 alone—approximately $463 million from WLFI token sales and total crypto-related income exceeding $800 million across Trump-linked ventures.

These figures significantly outpace income from traditional businesses (golf clubs, licensing). The project maintains that Trump and his family do not manage day-to-day operations, which are run by crypto-native executives, and that governance is designed to limit direct influence.

• Earnings Estimate: Hundreds of millions in 2025 from crypto ventures.
• Governance Claim: Operations run independently by executives.
• Criticism: Potential conflict of interest for a sitting president.

Crypto Credit Market Recovery Provides Favorable Backdrop

The lending launch aligns with a strong rebound in crypto credit markets. Galaxy Digital’s November 2025 report showed active DeFi loans reaching nearly $41 billion by Q3 end, pushing total crypto lending (CeFi + DeFi) to an all-time high of ~$74 billion.

• DeFi Loan Growth: $41 billion active loans.
• Total Lending: ~$74 billion across platforms.
• Market Context: Rising demand for on-chain credit products.

Outlook: Institutional Expansion and Regulatory Path

World Liberty Financial’s lending rollout and trust bank charter application represent a strategic push to formalize and scale USD1 operations under federal oversight. If the OCC charter is approved, it would create a regulated, full-stack stablecoin and credit offering—potentially attracting conservative institutional capital wary of unregulated DeFi.

Near-term risks include:

• Regulatory scrutiny over Trump family involvement.
• Industry opposition to new trust charters.
• Competition from established players (Aave, Compound, Maker).

Long-term, the project could become a significant bridge between traditional finance and crypto credit, especially if USD1 continues its rapid adoption trajectory.

In summary, World Liberty Financial—the Trump-backed crypto project—has launched World Liberty Markets, its first lending and borrowing platform powered by Dolomite and centered on the fast-growing USD1 stablecoin (nearing $3.5 billion market cap). The move coincides with an OCC application for a national trust bank charter that would bring issuance, custody, and conversion under federal supervision. While conflict-of-interest concerns persist due to Trump family ties and substantial reported earnings, the launch aligns with a robust recovery in crypto credit markets and positions the project for deeper institutional penetration. Monitor OCC review progress, USD1 adoption metrics, and ETF flow trends for confirmation of momentum—always reference official regulatory filings and compliant sources when evaluating cryptocurrency-related developments.