Solana News Today: "USD1 Targets Solana Expansion to Fuel DeFi Growth and Liquidity"

USD1, a U.S. dollar-pegged stablecoin developed by World Liberty Financial (WLFI) and supported by Huobi HTX, is expanding its reach into new blockchain ecosystems, including Solana, signaling a strategic shift in the stablecoin's deployment strategy. Pegged 1:1 to the U.S. dollar and backed by short-term U.S. Treasury bonds, dollar deposits, and other cash equivalents, USD1 has positioned itself as a compliant and transparent stablecoin. The asset is currently deployed on Ethereum, BNB Chain, and TRON, with a circulating supply of approximately $2.5 billion, most of which resides on BNB Chain. The stablecoin’s rapid adoption has seen it rank among the top six stablecoins globally, with major exchanges like Binance and Bullish incorporating it into their investment and trading activities.

The expansion of USD1 to Solana is being driven by a combination of strategic planning and technical implementation. On August 29, Charles, the head of WLFI's Solana ecosystem strategy, announced that the rollout would occur "sooner than you think," with co-founder Zach Witkoff reinforcing the message on social media. Independent blockchain analysts, including Dumpster Dao, have reported early signs of the move, noting that a wallet linked to World Liberty Financial deployed a Chainlink CCIP program on Solana to bridge its WLFI token. Further on-chain activity indicates that integrations with major Solana protocols, such as Kamino Finance—Solana’s largest lending platform—are in progress. Kamino has reportedly set up a dedicated USD1 vault, with on-chain flows showing movement of the stablecoin from the platform’s multisig wallet back to the WLFI deployer on Solana. These developments suggest the project is moving beyond announcements into active deployment.

Solana’s stablecoin market has grown to a market capitalization of over $12 billion, according to DeFiLlama data, with Circle’s USDC leading the market at $8.7 billion in supply, followed by Tether’s USDT at $2.17 billion. Analysts suggest that the addition of USD1 could further strengthen the Solana DeFi ecosystem by providing additional liquidity for lending, settlement, and trading activities. The move aligns with broader industry trends that highlight the importance of cross-chain compatibility and the need for stablecoins that can support scalable and efficient financial transactions.

USD1’s emphasis on compliance and transparency has been central to its development. The stablecoin is custodied by BitGo Trust Company and adheres to U.S. financial regulatory standards, offering monthly audit reports and open asset proof systems to verify reserves. This approach has helped build trust among institutional and retail investors, positioning USD1 as a credible alternative in a market often criticized for opaque practices. WLFI, the firm behind USD1, has also made strides in securing strategic partnerships and investments, including a $30 million purchase by Justin Sun, the founder of TRON and a global advisor to Huobi HTX.

However, challenges remain, including concerns around transparency and asset management, particularly in projects affiliated with key stakeholders like Sun. These issues have prompted calls for enhanced audits and more transparent communication with the crypto community. As USD1 continues its expansion, the project’s ability to address these concerns will be critical to maintaining its credibility and long-term success in the competitive stablecoin market.

Source:

[1] WLFI and USDT: How USD1 Stablecoin is Redefining ... (https://tr.okx.com/en/learn/wlfi-usdt-usd1-stablecoin-compliance)

[2] World Liberty Financial Signals Imminent Solana Rollout ... (https://www.mitrade.com/insights/news/live-news/article-3-1082158-20250830)