World Liberty enters stablecoin-based lending market… DOLO surges 30%

Reports have emerged that World Liberty Financial (WLFI), a crypto (cryptocurrency) company led by the family of U.S. President Donald Trump, is expanding its business into a lending and borrowing market that uses stablecoins.

According to crypto-specialist media outlet Coindoo on the 12th, WLFI is launching “World Liberty Markets,” a peer-to-peer lending and borrowing platform, widening its stride from a stablecoin issuer into a decentralized finance (DeFi) financial platform. The outlet said the company lists President Trump as “co-founder emeritus.”

The new platform focuses on capital utilization rather than simple remittances or providing trading pairs. Users can lend their crypto assets to earn yield or post collateral to access liquidity. This is seen as a strategic shift to extend stablecoins—previously largely confined to payments—into financial products.

At the center of the platform is USD1, a dollar-pegged stablecoin. Since its launch last year, USD1 has grown rapidly, with its market capitalization expanding to about $3.4 billion. WLFI executives believe the lending and borrowing features will turn USD1 into a financial tool that provides an incentive to hold it in wallets, rather than merely serving as a medium of exchange.

World Liberty Markets supports USD1 as well as WLFI tokens, Ether (ETH), tokenized Bitcoin (BTC), USDT, and USDC as collateral assets. By placing USD1 alongside the major assets used across existing DeFi markets, the company aims to broaden adoption through real-world usability.

USD1’s growth has also been influenced by cooperation with global exchange Binance. Binance was involved in USD1’s development and has recently expanded related trading pairs. Earlier, Abu Dhabi-based investment firm MGX used USD1 in a $2 billion transaction tied to Binance. The report cited this as an example of growing use cases for the stablecoin among institutional investors.

WLFI plans to add additional collateral assets beyond crypto in the future. Co-founder Zach Folkmann mentioned the possibility of including tokenized real-world assets (RWA), and in the past the company has reviewed a plan to put Trump family-linked real estate on the blockchain.

The lending and borrowing functions are built on the existing DeFi protocol Dolomite (DOLO). WLFI said using proven infrastructure allows it to focus on expanding use cases rather than developing core technology.

Jack Witkoff, WLFI’s chief executive officer (CEO), said, “The goal of the platform is to make USD1 not a static dollar substitute, but a tool that provides yield and leverage.”

WLFI is also preparing services aimed at retail users. Within this year, it plans to launch a mobile application integrating lending and borrowing functions, and it is also considering a debit card and rewards program that allow direct use of USD1. At the same time, it is pursuing a U.S. banking charter through one of its affiliates, and if approved, it is expected to be able to expand its stablecoin business within the regulatory framework.

Meanwhile, after the news, the Dolomite token DOLO posted a sharp short-term rally, trading at $0.05343, up 27.9% over the past 24 hours.