Trump's DeFi Play Transforms Token Power and Value

World Liberty Financial (WLFI), a decentralized finance (DeFi) platform associated with the Trump family, has announced key developments regarding its native token and stablecoin, USD1. The WLFI token, originally a governance-only asset, is now entering open circulation following a July governance vote approving its transferability. The token generation event (TGE) is scheduled for September 1, 2025, with spot trading expected to commence at 12:00 PM UTC. At launch, 20% of WLFI’s supply will be transferable, while the remaining tokens will be subject to community governance or vesting periods. This shift marks a significant milestone in the project’s journey toward broader token utility and decentralization [1].

To facilitate the token activation process, WLFI users must engage with the WLFI Lockbox smart contract, which has been audited by Cyfrin. The process requires two steps: Lockbox activation before September 1 and token claiming starting from September 1. Users must activate the Lockbox at WorldLibertyFinancial.com to initiate the unlocking process, after which they will be eligible to claim the 20% unlocked tranche. The Lockbox will remain open for subsequent claims. All presale wallets have been pre-screened for compliance, and users must complete required certifications to participate [4].

Meanwhile, the Trump family-backed USD1 stablecoin has gained regulatory and market traction. It was recently listed on Coinbase, one of the largest U.S. cryptocurrency exchanges, expanding its accessibility to retail and institutional investors [2]. This listing comes amid heightened regulatory scrutiny and legislative developments in the U.S. stablecoin market, including the passage of the GENIUS Act. The act outlines guidelines for stablecoin issuance and trading, reflecting growing interest in the role of stablecoins in cross-border payments and digital asset ecosystems [3].

World Liberty Financial has also announced significant treasury growth, with USD1 minting reaching $205 million in a single week, boosting its total supply to $2.4 billion [3]. This increase has contributed to the WLFI treasury reaching a record high of $548 million, according to Nansen. The USD1 stablecoin now constitutes 39% of World Liberty’s total portfolio, surpassing other major holdings such as Aave Ethereum USDT (AETHUSDT) and Ether (ETH) [3].

The project has outlined plans to stabilize the WLFI token’s value through a $1.5 billion crypto-treasury initiative, supported by investments in ALT5 Sigma and the addition of Eric Trump to its board [1]. These actions, along with the token’s open circulation, demonstrate the project’s strategic approach to building a decentralized financial infrastructure.

The developments surrounding WLFI and USD1 reflect broader trends in the DeFi space, including increased institutional interest, regulatory clarity, and token utility expansion. As stablecoins and governance tokens continue to play pivotal roles in crypto ecosystems, projects like World Liberty Financial are positioning themselves to capitalize on the evolving market landscape.

Source:

[1] Trump-Related DeFi Platform World Liberty Financial Debuts (https://finance.yahoo.com/news/trump-related-defi-platform-world-173044552.html)

[2] Trump-Backed World Liberty Gets Coinbase Approval With (https://finance.yahoo.com/news/trump-backed-world-liberty-gets-212741844.html)

[3] Trump's World Liberty mints 9% of USD1 supply after (https://cointelegraph.com/news/trump-world-liberty-financial-mints-9-of-its-stablecoin-supply)

[4] Trump Family's World Liberty Financial (WLFI) Token Finally (https://finance.yahoo.com/news/trump-family-world-liberty-financial-103246995.html)