World Liberty Financial Bets Big: $120M Treasury Shift to Supercharge USD1 Stablecoin Expansion

Stablecoin arms race heats up as traditional finance makes its move.

World Liberty Financial—not exactly a household name in crypto circles—just threw down the gauntlet. The institutional player proposes shifting $120 million from its treasury reserves to backstop its USD1 stablecoin. That’s not just pocket change—it’s a direct challenge to the Tether and Circle duopoly.

Why now? The timing reeks of opportunism.

With regulators finally cracking down on unbacked ‘stable’ coins, WLF’s play looks less like innovation and more like compliance theater. Their press release touts ‘unprecedented transparency’—which, in finance-speak, usually means ‘we’ll show you the bare minimum to avoid lawsuits.’

The real story? Old money wants a slice of the crypto pie without the volatility. How very… conservative.

One thing’s certain: the stablecoin wars just got a $120 million plot twist. Will this move actually scale adoption, or just inflate another balance sheet? Place your bets.

World Liberty Financial is considering a major treasury MOVE that could reshape the future of its USD1 stablecoin, and the community is split.

The Trump family-backed crypto project has proposed usingto expand adoption of its U.S. dollar–pegged stablecoin,, as competition in the stablecoin market heats up.

The proposal, posted Wednesday on World Liberty Financial’s governance forum, calls for allocatingto grow USD1’s circulating supply and push integrations across both centralized and decentralized finance platforms.

Why World Liberty Financial Is Pushing USD1 Now

According to the team, the stablecoin market is becoming increasingly crowded.

The proposal argues that expanding USD1’s supply WOULD help embed the stablecoin deeper into crypto infrastructure.

As the team explained, “As USD1 grows, more users, platforms, institutions, and chains integrate with World Liberty Financial infrastructure.”

They added that higher circulation strengthens the broader ecosystem governed by WLFI holders, creating demand for liquidity incentives, integrations, and ecosystem programs.

In short, USD1 growth is being positioned as a direct driver of WLFI’s long-term relevance.

Community Reaction Remains Divided

Not everyone is convinced.

The governance vote is currently live, offering options to vote for, against, or abstain. Early responses show, reflecting unease among some WLFI holders.

Supporters argue the treasury deployment could reward partners building on USD1 and help the project compete with established players. Some have suggested directing funds toward decentralized exchanges on ethereum and Solana, as well as major centralized exchanges.

Critics, however, have raised concerns about unlocking treasury tokens too early, with some calling for broader supply releases or clearer governance rules before moving forward.

Where USD1 Stands in the Stablecoin Market

USD1 launched in March and has grown quickly, now holding a, making it the.

The proposal follows recent treasury activity, including aand reported liquidity support from market Maker DWF Labs.

If approved, the $120 million allocation would mark a key test for World Liberty Financial.