Last updated on January 3rd, 2026 at 01:38 pm
Quick Breakdown
- World Liberty Financial eyes $5 billion from U.S. Treasury to grow its USD1 stablecoin and challenge Tether and Circle dominance.
- Trump family-backed project seeks federal funds amid stablecoin market hitting $250 billion capitalization.
- Proposal aligns with President Trump’s pro-crypto stance, potentially reshaping U.S. dollar dominance in digital assets.
World Liberty Financial (WLFI) has proposed allocating up to $5 billion from the U.S. Treasury to expand its USD1 stablecoin. The plan aims to capture market share from industry leaders like Tether’s USDT and Circle’s USDC, which together control over 90% of the $250 billion stablecoin sector. WLFI outlined the strategy in a recent filing, arguing that federal backing would strengthen USD1’s liquidity and adoption while promoting American innovation in blockchain payments.
🚨 GOVERNANCE UPDATE 🚨
A new proposal is now LIVE for voting from the community: using a portion of the unlocked WLFI treasury as incentives to fuel USD1 adoption.
Over the last 3 weeks alone, WLFI has:
• Bought back $10,000,000 of WLFI using USD1
• Secured major spot…— WLFI (@worldlibertyfi) December 17, 2025
The proposal emerges as President Donald Trump pushes crypto-friendly policies following his 2024 reelection. WLFI, launched in 2025, positions USD1 as a compliant alternative with full reserves audited by major firms. Project executives claim the Treasury infusion, potentially via direct purchases or incentives, could scale from USD1 to $50 billion within two years, rivalling USDC’s current $60 billion supply. This move reflects broader U.S. efforts to counter China’s digital yuan and maintain dollar hegemony in Web3.
Regulatory backing gains momentum.
U.S. regulators have softened stances on bank-stablecoin ties, with the Federal Reserve withdrawing restrictive guidance in July 2025. WLFI’s pitch cites this shift, plus OCC approvals for banks like SoFi to launch stablecoins, as precedents. Critics warn of conflicts given the Trump family’s involvement. Barron Trump serves as WLFI’s ambassador, but proponents highlight the potential for transaction fees to exceed $1 billion annually.
Stablecoin market implications.
Similarly, Circle has launched the EURC stablecoin on World Chain, a Layer-2 blockchain designed for scalability and human identity. This launch, which leverages the World ID proof of human identity for over 37 million users, is intended to broaden access to euro-denominated payments and Decentralized Finance (DeFi) worldwide.
The EURC is key for verified transactions, real-time settlement for DeFi applications, and secure digital savings, especially in emerging markets. It is fully compliant with the Markets in Crypto Assets (MiCA) regulation and is redeemable 1:1 for euros.
Following the success of the USDC launch, this multi-currency blockchain adoption is a strategic move to connect traditional finance with decentralized ecosystems.
If you would like to read more articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
