Ethereum News Today: World Liberty Financial Mints 10 of USD1 Supply to Bolster Treasury and Market Position

World Liberty Financial (WLFI), a project linked to former U.S. President Donald Trump, has recently minted $205 million in USD1 stablecoin, increasing its total supply to $2.4 billion. This represents approximately 10% of the circulating USD1 supply, marking a significant expansion of the stablecoin’s market presence [1]. The minting event occurred on August 20, 2025, and aligns with recent regulatory developments and supportive statements from the Federal Reserve, which have helped to elevate the credibility of stablecoins in the DeFi space [2].

USD1 operates on the Ethereum blockchain and is now the sixth-largest stablecoin by market capitalization. The increased supply is being allocated to treasury operations, with WLFI’s treasury now holding $548 million in assets. This move is expected to enhance the project’s ability to fund strategic initiatives, form partnerships, and provide liquidity, reinforcing USD1’s potential for broader adoption [3]. The expansion has already influenced the DeFi ecosystem, particularly affecting USD1, USDT, and ETH, though no significant impact on Bitcoin has been observed at this time [4].

The timing of the minting aligns with growing institutional confidence in stablecoins, supported by recent legislative action. The GENIUS Act, which was signed into law, aims to establish a clearer regulatory framework for stablecoin issuance and operations, signaling a more accommodating environment for innovation in digital finance [5]. Federal Reserve Governor Christopher Waller has also expressed optimism about stablecoins, stating that they could play a key role in expanding the reach of the U.S. dollar and improving cross-border payment systems [6].

While Treasury Secretary Scott Bessent has not been directly involved in WLFI, he has engaged in broader regulatory discussions regarding stablecoins. These developments reflect a broader industry trend of regulatory engagement, with lawmakers and financial officials recognizing the potential benefits of stablecoins for financial infrastructure [7]. The recent expansion of USD1’s supply also follows a pattern seen in other stablecoin projects, where regulatory clarity and treasury management play critical roles in shaping market dynamics [8].

The move by WLFI underscores the increasing intersection between high-profile political figures and the DeFi sector. As more entities seek to integrate stablecoins into traditional and decentralized financial systems, the success of such projects will depend on continued regulatory support, real-world utility, and the ability to maintain stable value. The USD1 stablecoin now stands as a notable example of how regulatory alignment and strategic minting can influence market positioning and institutional interest [9].

Source:

[1] CryptoSlate, https://cryptoslate.com/trumps-world-liberty-financial-mints-10-of-usd1-supply-for-treasury/

[2] CoinCentral, https://coincentral.com/trumps-world-liberty-defi-project-mint-usd1-token-worth-205-million/

[3] CryptoRank, https://cryptorank.io/news/tag/defi

[4] CryptoSlate, https://cryptoslate.com/us-may-revive-18th-century-letters-of-marque-to-fight-2025-crypto-mega-hacks/

[5] Binance, https://www.binance.com/en/square/profile/coinspeaker

[6] Coinpaper, https://cryptorank.io/news/feed/279da-sharp-link-gaming-s-ethereum-holdings-surge-after-record-weekly-purchase

[7] Coinalyze, https://coinalyze.net/ethereum/usd/coinbase/price-chart-live/

[8] CoinMarketCap, https://coinmarketcap.com/community/articles/68a752dfca89393ea1503b95/