World Liberty Markets Goes Live, Giving USD1 a Lending and Borrowing Use Case

World Liberty Financial has launched World Liberty Markets, a lending and borrowing platform that uses its USD1 stablecoin. The platform is powered by Dolomite, a DeFi infrastructure provider, and supports USD1 alongside other major crypto assets like ETH, USDC, and USDT.

The stablecoin, USD1, now has a market capitalization of approximately $3.4 billion, making it one of the largest dollar-backed stablecoins in the crypto space. The new platform expands USD1's utility beyond its initial use cases, such as cross-border payments and treasury operations.

World Liberty Markets is positioned to benefit from the broader recovery in DeFi lending. A November 2025 report by Galaxy Digital noted a surge in onchain lending volumes, with active DeFi loans reaching nearly $41 billion by the end of Q3 2025.

Why the Move Happened

The platform's launch coincides with World Liberty Financial's ongoing efforts to formalize its operations under U.S. banking regulations. The firm recently submitted an application to the Office of the Comptroller of the Currency (OCC) for a national trust bank charter, which would place USD1 under federal supervision if approved.

World Liberty's co-founder, Zak Folkman, emphasized the platform's potential to support tokenized real-world assets in the future. The company is also exploring integrations with crypto exchanges, prediction markets, and real estate projects to expand the utility of USD1.

How Markets Responded

The market reaction to the launch has been mixed, with some analysts highlighting the regulatory risks associated with the project. The Trump family's financial involvement in World Liberty Financial has drawn scrutiny, with critics raising concerns about potential conflicts of interest. According to a Reuters investigation, the family earned over $800 million from related token sales in the first half of 2025.

World Liberty claims that Trump and his family do not manage day-to-day operations. The firm's governance structure is designed to limit direct influence from the Trump family, according to a statement by the company.

What Analysts Are Watching

Analysts are closely watching the regulatory developments surrounding the project. If the company secures a national trust bank charter from the OCC, it could significantly boost the adoption and credibility of USD1.

The success of World Liberty Markets will also depend on how well it can compete with established DeFi lending platforms like Aave and Compound. The platform's use of Dolomite infrastructure is seen as a strategic move to provide a robust and trusted lending environment.

Investors are also monitoring the broader DeFi lending market for signs of sustained recovery. As of late 2025, total crypto lending volumes had reached a new all-time high of $74 billion, driven by both centralized and decentralized platforms.