The Strategic Case for Investing in World Liberty Financial's USD1 Stablecoin as a Gateway to On-Chain Prediction Markets

The rise of decentralized finance (DeFi) has redefined the boundaries of traditional financial infrastructure, and stablecoins have emerged as the linchpin of this transformation. Among the most promising contenders in this space is World Liberty Financial's USD1 stablecoin, a fiat-backed asset with a growing footprint in DeFi lending, cross-chain interoperability, and-most notably-on-chain prediction markets. As market data shows, the stablecoin's market capitalization surged to $3.5 billion by early 2026, its strategic integration into platforms like Myriad has positioned it as a critical gateway for institutional and retail investors seeking exposure to the next frontier of digital finance.

DeFi Infrastructure and Cross-Chain Utility

USD1's appeal lies in its dual role as both a stable reserve asset and a catalyst for DeFi innovation. Backed by a reserve structure managed by BitGo Trust Company-comprising cash deposits, U.S. Treasury securities, and cash equivalents-the stablecoin maintains a 1:1 peg to the U.S. dollar. Its multi-chain deployment across Ethereum, BNB Chain, Solana, and Tron ensures seamless interoperability, enabling developers to build cross-chain applications while minimizing friction for users. This infrastructure has been further bolstered by the launch of World Liberty Markets in January 2026, a lending platform that allows users to earn yields on USD1, ETH, and USDC. With an initial Total Value Locked (TVL) of $20 million, the platform underscores USD1's utility in DeFi's expanding lending and borrowing ecosystems.

On-Chain Prediction Markets: A New Frontier

The most compelling development for USD1 in 2025 was its integration into Myriad, a prediction market platform operated by Dastan (parent company of Decrypt). Myriad adopted USD1 as its exclusive settlement asset for BNB Chain-based markets, marking a pivotal shift in the stablecoin's real-world utility. This partnership, announced in January 2026, saw the launch of USD1-denominated markets through Myriad's Candles product-a fast-paced, automated prediction tool designed for short-term trading cycles. By Q1 2026, Myriad had transitioned all BNB-based prediction markets to USD1, consolidating liquidity and standardizing infrastructure.

The strategic significance of this integration cannot be overstated. Prediction markets, long considered a niche segment of DeFi, have seen explosive growth in 2025, with notional trading volumes reaching $5.31 billion in a single week. Myriad's cumulative trading volume alone hit $167 million since its launch, and the platform's partnership with MoonPay has further enhanced accessibility for traders. By anchoring these markets to USD1, Myriad has created a flywheel effect: deeper liquidity attracts more users, which in turn drives higher transaction volumes and reinforces USD1's role as the settlement standard.

Real-World Adoption and Institutional Momentum

Beyond DeFi, USD1's adoption in real-world asset integration has accelerated. A $2 billion investment deal between Abu Dhabi's MGX and Binance in early 2026 highlighted the stablecoin's potential for large-scale financial settlements. Meanwhile, World Liberty Financial's mobile app, set to launch in 2026, will enable users to engage in payments, swaps, and governance voting, further embedding USD1 into everyday financial workflows. Institutionally, the stablecoin's partnership with Pakistan to integrate into a regulated digital payments framework underscores its appeal in emerging markets.

Market Metrics and Growth Trajectory

The broader stablecoin market has mirrored USD1's ascent. In 2025, stablecoin transaction volumes reached a record $33 trillion, with USD1 contributing to this growth through its expanding use cases. DeFi lending revenue also saw a significant uptick, rising from $10 million per month in 2024 to $15–25 million in 2025, a trend that USD1's lending platform is well-positioned to capitalize on.

Challenges and the Path Forward

Despite its momentum, USD1 faces headwinds. Regulatory scrutiny, including the U.S. Senate's request for the OCC to pause its banking application due to ties with Trump-linked interests, remains a risk. Additionally, liquidity concerns-such as shallow order books-could exacerbate volatility if adoption outpaces infrastructure development. However, Myriad's launch of liquidity pools in 2026 and USD1's multi-chain strategy mitigate these risks by incentivizing liquidity provision and diversifying use cases.

Conclusion

USD1's strategic integration into on-chain prediction markets, coupled with its robust DeFi infrastructure and real-world adoption, positions it as a compelling investment. As prediction markets mature into mainstream financial instruments, USD1's role as the settlement standard for platforms like Myriad ensures its value will be closely tied to the sector's growth. For investors seeking exposure to the next phase of DeFi, USD1 offers a unique combination of utility, institutional backing, and cross-chain scalability.