Trump-Linked World Liberty Enters Crypto Lending Market

World Liberty Financial, a decentralized finance project linked to the family of U.S. President Donald Trump, has entered the cryptocurrency lending market. The new platform, World Liberty Markets, allows users to lend and borrow digital assets using USD1, a U.S. dollar–backed stablecoin. The stablecoin now has a market capitalization of approximately $3.4 to $3.5 billion, according to multiple sources.

The platform supports major crypto assets, including Ether (ETH), tokenized Bitcoin (BTC), and stablecoins like USDC and USDT. Users can post collateral and access liquidity without leaving the platform, streamlining the borrowing and lending process. World Liberty co-founder Zak Folkman said the company is exploring additional collateral types, such as tokenized real-world assets.

The launch follows World Liberty's application for a national trust bank charter with the U.S. Office of the Comptroller of the Currency. The company stated that the charter would support broader adoption of USD1, helping integrate the stablecoin into regulated financial infrastructure.

Why Did This Happen?

Crypto lending markets are gaining momentum as digital assets become more mainstream. Investors are seeking new ways to unlock liquidity without selling their holdings. This renewed interest is happening alongside clearer regulatory frameworks and a more mature industry infrastructure. The collapse of previous lending platforms like BlockFi and Celsius was largely due to centralized business models and opaque risk management.

World Liberty's approach emphasizes onchain risk controls and transparency, aiming to prevent similar failures. By leveraging blockchain technology, the platform operates with fully collateralized loans and transparent liquidation mechanisms.

How Did Markets React?

Activity across DeFi lending protocols has surged in recent years, reaching an all-time high of $73.59 billion in the third quarter of 2025. DeFi lending now accounts for more than half of the total crypto lending market. World Liberty's entry into this space is seen as a sign of continued growth in onchain credit markets.

The USD1 stablecoin is deployed across multiple blockchains, with the largest allocation on BNB Smart Chain, followed by Ethereum. Smaller but growing allocations exist on Solana, Aptos, and Tron. This widespread distribution supports the stablecoin's utility and adoption.

World Liberty is also planning a mobile application and debit card for USD1 users. The debit card will allow users to spend the stablecoin and earn loyalty points, further increasing its real-world use.

What Are Analysts Watching Next?

Regulatory alignment remains a key focus for World Liberty. The company's application for a national trust bank charter signals its intent to operate within federal oversight. If approved, this charter could help attract institutional clients and improve consumer protections.

Analysts are also watching how onchain lending models evolve. Unlike previous cycles, the current growth is driven by fully collateralized loans and transparent mechanisms. This shift is seen as a positive development for the industry's long-term stability.

World Liberty's move into crypto lending reflects a broader trend of convergence between onchain and offchain markets. As more participants enter the space, competition is intensifying, leading to tighter margins and higher liquidity.

The company's ownership structure has drawn scrutiny, particularly given its ties to President Trump and his family. Critics argue this could create conflicts of interest, though the firm states that day-to-day operations are managed by independent executives.

Overall, World Liberty's lending platform represents a significant step forward for USD1 and the broader crypto lending ecosystem. As the market continues to evolve, the focus will remain on regulatory compliance, real-world utility, and investor protection.