Key highlights:
- World Liberty Financial has launched a crypto lending platform tied to its USD1 stablecoin.
- Users can borrow and lend assets like Ethereum, tokenized Bitcoin, and major stablecoins.
- The launch comes as crypto lending demand grows under clearer regulation.
World Liberty Financial, a decentralized finance project associated with the family of U.S. President Donald Trump, has launched a new crypto lending platform called World Liberty Markets.
The platform went live on January 12 and allows users to borrow and lend digital assets. It is built around the USD1 stablecoin, which is backed by the U.S. dollar, and the WLFI governance token.
What users can do on World Liberty markets
Users can post several assets as collateral, including Ethereum, tokenized Bitcoin, and major stablecoins such as USD Coin and Tether. The platform is designed to handle lending and borrowing within a single blockchain-based marketplace.
World Liberty co-founder Zak Folkman told Bloomberg that more types of collateral, including tokenized real-world assets, will be added over time. The company is also exploring partnerships with prediction markets, crypto exchanges, and real estate platforms.
USD1 stablecoin is growing fast
World Liberty’s USD1 stablecoin has grown quickly, reaching a market capitalization of $3.4 billion. The launch of the lending platform follows the company’s recent application for a national trust bank license from the U.S. Office of the Comptroller of the Currency.
The company says the license would help expand USD1 usage, which is already being used for cross-border payments and treasury transactions.
Crypto lending makes a comeback
As digital assets become more mainstream, interest in crypto lending is rising again. Many investors want access to liquidity without selling their crypto.
This renewed demand comes after painful lessons from past collapses like BlockFi and Celsius, which failed due to centralized structures, weak risk controls, and excessive leverage, not because of blockchain technology itself.
Market participants now argue that on-chain transparency, better risk management, and stronger regulation can reduce the chance of similar failures. Activity in decentralized lending protocols has climbed steadily, with major growth seen in recent months.
Crypto lending is also returning in hybrid forms. For example, Nexo offers zero-interest loans that allow Bitcoin and Ethereum holders to borrow against their assets, showing continued demand for secured lending.
DeFi gains momentum again
Decentralized finance activity is accelerating. Babylon recently raised $15 million from a16z Crypto to expand its Bitcoin-based lending infrastructure.
Unlike older centralized lenders, newer platforms aim to operate fully on-chain, with transparent rules and programmable risk controls. Supporters say this structure could make crypto lending safer and more resilient.
At the same time, World Liberty’s political ties add a new layer to the story. A $3.4 billion stablecoin linked to the president’s family could eventually become a tool in global payments, especially if it gains a banking license.
That possibility raises a bigger question: could private crypto systems begin to compete with national digital currencies in shaping the future of global finance?
Source:: Trump’s World Liberty Enters Crypto Lending With $3.4B in Capital