World Liberty Financial Bets Big: $120 Million Treasury Push Targets USD1 Stablecoin Domination

World Liberty Financial just made a massive play for the stablecoin market.

The $120 Million Gambit

The firm isn't dipping a toe in the water—it's diving in headfirst with a proposed nine-figure treasury allocation. This capital injection is a direct shot at scaling its USD1 stablecoin, signaling a major strategic pivot into the heart of digital finance. It's a move that bypasses timid pilot programs and goes straight for aggressive growth.

Building the Stablecoin Arsenal

Forget vague promises of 'exploring digital assets.' This capital is earmarked for concrete expansion: bulking up liquidity pools, forging new exchange partnerships, and funding integrations that get USD1 into the hands of users and developers. The goal is clear—establish a formidable position in a market where trust is the ultimate currency, and size often dictates survival.

The Institutional Endgame

This isn't just about retail crypto trading. A fortified USD1 becomes a potential cornerstone for treasury management, cross-border settlements, and a compliant gateway between traditional and decentralized finance. World Liberty isn't just launching a stablecoin; it's building infrastructure, betting that the future of institutional money movement will be digitized—and it wants to own the rails.

A cynical observer might note that when traditional finance finally embraces crypto, it's often to create a better-controlled version of the thing it once dismissed. World Liberty's $120 million wager suggests they've done the math and like the odds, positioning USD1 not just as a digital dollar, but as a strategic asset in the coming financial system.

TLDR

• World Liberty Financial proposed using 5% of its WLFI token treasury (worth around $120 million) to increase USD1 stablecoin supply and adoption
• The proposal aims to grow USD1 partnerships across centralized and decentralized finance platforms to compete with larger stablecoins
• USD1 currently has a $2.74 billion market cap, making it the seventh-largest USD-pegged stablecoin
• Community voting on the proposal shows mixed reactions, with “against” votes slightly ahead of those in favor
• World Liberty Financial recently completed a $10 million WLFI token buyback using USD1 stablecoin

World Liberty Financial has put forward a proposal to allocate 5% of its WLFI token treasury to boost the supply and adoption of its USD1 stablecoin. The TRUMP family-backed project posted the plan to its governance forum on Wednesday.

WLFI READY TO DEPLOY $120M TO BOOST USD1

World Liberty Financial is considering using 5% of its treasury, about $120 MILLION, to boost adoption of its USD1 stablecoin and challenge larger rivals. pic.twitter.com/mLlQ4dt2Ps

— Coin Bureau (@coinbureau) December 18, 2025

The proposal WOULD unlock approximately $120 million worth of WLFI tokens from a treasury currently valued at nearly $2.4 billion. World Liberty Financial started trading its WLFI token on exchanges in September, with 19.96 billion tokens allocated to the treasury.

The team said the additional supply would help expand USD1 use cases through partnerships with centralized and decentralized finance platforms. They believe this approach is necessary to compete in what they called an increasingly competitive stablecoin market.

According to the proposal, growing USD1’s circulation would increase demand for services governed by WLFI token holders. This includes liquidity incentives, ecosystem programs, and platform integrations.

The team stated that more USD1 in circulation leads to greater integration with users, platforms, institutions, and blockchain networks. WLFI holders would gain governance power over product expansions, incentive decisions, and cross-chain strategies.

Community Response and Current Market Position

The voting process is currently live, though the exact voting mechanism remains unclear. Community reactions to the proposal are mixed, with votes against the measure slightly outnumbering those in favor.

Some community members support the allocation as a way to reward partners building on USD1. One investor suggested directing funds toward decentralized exchanges on ethereum and Solana, as well as centralized exchanges.

Other participants oppose using the treasury allocation for USD1 growth. Some recommended unlocking at least 80% of the total WLFI supply tokens held in the treasury instead.

USD1 launched in March and currently has a market cap of $2.74 billion according to CoinGecko data. This makes it the seventh-largest USD-pegged stablecoin on the market.

The stablecoin faces competition from established players like PayPal’s PYUSD, which holds the sixth position with a market cap $1.1 billion larger than USD1. Growing USD1 to challenge these competitors would require substantial adoption increases.

Recent Treasury Activities

World Liberty Financial recently completed a $10 million WLFI token buyback initiative over three weeks. The protocol used USD1 to purchase WLFI tokens from the open market.

Reports indicate that crypto market maker DWF Labs has been supporting USD1 through purchases totaling over $300 million. Analysis of wallet transactions revealed a three-layer liquidity structure that injected $84 million in the past month alone.

DWF Labs publicly purchased $25 million worth of USD1 tokens, with a large portion ending up on Binance. The Cantor Network announced plans to deploy USD1, which World Liberty Financial described as another step in the token’s expansion strategy.

The proposal requires future governance votes for any additional use of WLFI treasury holdings for USD1 growth. The team emphasized that WLFI serves as the governance and coordination LAYER for the entire ecosystem.