World Liberty Financial has expanded into crypto lending with the launch of its first borrowing and lending platform, marking a significant step as its USD1 stablecoin climbs into the top tier of dollar backed tokens. The new product, World Liberty Markets, allows users to lend and borrow digital assets using USD1 alongside other major cryptocurrencies, reflecting a broader push to participate in the recovering crypto credit market. The move comes less than a year after the launch of USD1, which has grown rapidly to a market capitalization of nearly 3.5 billion dollars, placing it among the largest stablecoins in circulation. The lending platform is powered by Dolomite infrastructure and supports collateral including ether, USDC, USDT, and tokenized bitcoin. Its rollout highlights how stablecoin issuers are increasingly moving beyond payments into higher value financial services as onchain credit activity rebounds across decentralized markets.
The expansion also comes as World Liberty seeks to formalize its operations within the US financial system. An affiliated entity recently applied to establish a national trust bank focused on stablecoin issuance, custody, and conversion, a step that would place its activities under federal supervision if approved. The timing aligns with a broader recovery in crypto lending after years of contraction following the 2022 market downturn. Industry data shows decentralized lending volumes have climbed steadily through 2025, restoring confidence among platforms looking to capture renewed demand for leverage and yield. By pairing a rapidly scaling stablecoin with a lending product, World Liberty is positioning USD1 not just as a settlement asset but as a core building block for onchain credit. That strategy mirrors a wider shift in the market where stablecoins are evolving into foundational financial infrastructure rather than simple trading instruments.
At the same time, the project continues to attract scrutiny due to its ties to Donald Trump, who is listed alongside family members as a co-founder. Critics have raised concerns about potential conflicts of interest as the project expands its financial footprint while seeking regulatory approval. World Liberty has said day to day operations are handled by crypto native executives and that governance structures are designed to limit direct influence. The lending launch also places the project into direct competition with established decentralized credit protocols at a moment when regulatory and political attention on crypto is intensifying. As USD1 grows in scale and utility, its performance in lending markets is likely to be closely watched by regulators, investors, and competitors alike as a test of how politically linked stablecoin projects operate in a maturing crypto financial system.
