Launch of USD1-based lending platform, $3.4 billion in stablecoin supply.
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The company launched an on-chain lending platform centered around the USD1 stablecoin, pegged to the US dollar, providing approximately $3.4 billion (KRW 5.133 trillion) in liquidity to the market.
World Liberty Financial said it has built a single marketplace that supports both cryptocurrency lending and borrowing, citing signs of recovery in demand for on-chain credit amidst an increasingly clear regulatory landscape.
USD1·WLFI-centric on-chain lending structure
The recently launched World Liberty Market is designed with governance token WLFI and USD1, a stablecoin pegged to the US dollar, as its core assets.
The platform allows users to deposit collateral and lend or borrow cryptocurrencies.
Collateral assets include tokenized assets of Ethereum (ETH) and Bitcoin (BTC), as well as major cryptocurrencies and stablecoins such as USD Coin (USDC) and Tether (USDT).
All transactions are processed on-chain, without the need for a separate central intermediary.
Plans to expand to RWA and prediction markets
Zak Folkman, co-founder of World Liberty Financial, said in a Bloomberg interview that the company plans to add various collateral types in the future, including tokenized real assets (RWA).
He also explained that they are considering collaborations with prediction markets, cryptocurrency exchanges, and real estate platforms.
The launch of this lending platform comes after World Liberty Financial recently applied for a National Trust Bank charter with the Office of the Comptroller of the Currency (OCC).
The company expects that if the charter is approved, USD1 will be more widely used in cross-border payments and financial operations.
Is the Cryptocurrency Lending Market Reviving?
As cryptocurrency price volatility eases and institutional integration progresses, some analysts say demand for liquidity without selling assets is growing again.
The market points out that the cause of the past collapses of BlockFi and Celsius was not the blockchain technology itself, but rather its centralized operating structure and opaque risk management.
Industry insiders believe that cryptocurrency-based lending could become a more stable financial service if enhanced on-chain transparency is combined with regulatory oversight.
DeFi and institutional lending are also expanding.
Cryptocurrency lending is resurfacing in various forms.
Digital asset lending company Nexo is offering interest-free, collateralized loans to Bitcoin and Ethereum holders.
Movement continues in the DeFi (DFI) space as well.
Babylon recently secured $15 million from a16z Crypto to expand its Bitcoin-native lending infrastructure.
Market observers are also suggesting that World Liberty Financial's move could signal a full-scale restructuring of the cryptocurrency lending market, along with its political symbolism.
Reporter Jeong Ha-yeon yomwork8824@blockstreet.co.kr
