World Liberty Financial (WLFI) already testing its USD stablecoin on multiple chains

Source Cryptopolitan

Addresses linked to World Liberty Financial are testing a smart contract to issue a dollar-pegged stablecoin. The fund is preparing for the new asset, which will be a part of its DeFi strategy. 

World Liberty Financial, the Trump family DeFi fund, has been testing stablecoin smart contracts on several networks. The fund first mentioned a stablecoin in Q4, 2024, but delayed the launch while running the WLFI token presale. 

On-chain investigators have noticed stablecoins linked to World Liberty Fi on both Ethereum and BNB Smart Chain. Binance’s founder and former CEO Changpeng ‘CZ’ Zhao said the contract for the new stablecoin was deployed in early March. With the new tests, it may be possible the World Liberty Fi project will be multi-chain accessible.

Before ‘CZ’ Zhao confirmed the stablecoin’s issuer, there were only rumors, based on wallet interactions. So far, World Liberty Fi has not announced the tokenomics and issuance schedule of the stablecoin, or what type of backing it would have. Some of the speculations included using the stablecoin to buy and trade WLFI, thus boosting the asset’s price. 

The launch of USD1 on BNB Smart Chain comes at a time when traffic and liquidity are switching back to Binance’s network. Following the increased activity, demand for BNB also rose, driving the asset back to $638.77. 

World Liberty Fi’s USD1 tested with 7M supply

The stablecoin will use the USD1 ticker for both its versions. So far, the token supply is limited, and the asset remains untraded. For now, only the Wintermute market maker has interacted with one of the contracts, which directed investigators to the new stablecoin. 

Both the BSC and the Ethereum version have a supply of around $3.5M and only a handful of transactions. The Ethereum version of the USD1 token has also been tested by Wintermute. The stablecoin has been moved between large-scale whale wallets, in preparation for more activities as a multi-chain asset.

The discovery of the stablecoin follows a day of increased buying activity for the World Liberty Fi fund. The fund expanded its token portfolio to a value of over $88M. World Liberty Fi is preparing to run a full vault using Aave’s model, and a stablecoin can boost the fund’s liquidity. 

World Liberty Fi has used other stablecoins for trading, as a means of securing value in a volatile market. Having a new supply of stablecoins may increase the fund’s trading or lending capabilities, provided USD1 is accepted among DeFi protocols and exchanges. 

The fund is still preparing for a public announcement on the next stage for WLFI holders. For now, the WLFI token has been bought by over 80K wallets, while the USD1 stablecoin is only held in a handful of test wallets. 

The USD1 stablecoin arrives at a time when multiple niche protocols are launching their own asset. The total supply of stablecoins is estimated between 230B and 236B tokens, depending on how many assets are included. So far, World Liberty Fi has not mentioned the type of stablecoin it would issue, and what collateral would be used. 

World Liberty Fi has worked with Ondo Finance to research institutional solutions. In the end, however, the fund still relies on the most widely used public blockchains. 

WLFI tokens may unlock soon

The stablecoin news arrives at a time when the WLFI token also went through a test transaction. So far, the fund has raised over $550M for WLFI from both institutional and retail buyers. However, WLFI remains locked for up to a year since the end of the presale. 

Recently, a transaction moved 47 WLFI as a sign for the upcoming token unlock, with no strict deadline for moving or trading the asset.

The big question for WLFI would be when and how it would start to reward its holders. One of the potential use cases for a stablecoin would be to pay out passive earnings. 

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Disclaimer: For information purposes only. Past performance is not indicative of future results.
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