In a significant market development, Trump’s World Liberty Financial has executed a massive $205 million USD1 stablecoin mint, representing 9% of its total supply. This strategic move occurred just hours after Federal Reserve Governor Christopher Waller delivered a pro-crypto speech that specifically endorsed stablecoins‘ potential.
USD1 Stablecoin Supply Reaches Record Highs
The recent minting operation pushed the USD1 stablecoin supply to an unprecedented $2.4 billion. Consequently, this represents the token’s first substantial increase since late April. World Liberty Financial announced the transaction through their official X account on Thursday, confirming the treasury’s expanded holdings.
Regulatory Support Boosts USD1 Stablecoin Confidence
Federal Reserve Governor Christopher Waller’s speech proved particularly impactful for the USD1 stablecoin ecosystem. He stated, “I believe that stablecoins have the potential to maintain and extend the role of the dollar internationally.” Furthermore, Waller emphasized that stablecoins “have the potential to improve retail and cross-border payments.”
Key regulatory developments supporting USD1 stablecoin growth:
- GENIUS Act signed into law last month
- SEC Chair Paul Atkins’ endorsement of the legislation
- Growing institutional acceptance of stablecoins
World Liberty’s Treasury Holdings Skyrocket
The $205 million USD1 stablecoin mint has dramatically increased WLFI’s treasury holdings to a record $548 million according to Nansen data. Significantly, the USD1 stablecoin now constitutes World Liberty’s largest crypto holding at $212 million, representing 39% of their total portfolio.
Market Position and Competitive Landscape
Since its April launch, the Trump family-backed USD1 stablecoin has rapidly ascended to become the world’s sixth-largest stablecoin by market capitalization. However, it still trails market leaders significantly:
- Tether (USDT): $167 billion market cap (60% share)
- USDC: $67.4 billion market cap (24% share)
- USD1 stablecoin: $2.4 billion market cap
Strategic Investments and Future Plans
Beyond the USD1 stablecoin, World Liberty maintains substantial positions in other digital assets. Their portfolio includes $85 million in Aave Ethereum USDT and an equivalent value in Ether, totaling 19,650 ETH. Additionally, the project is exploring creating a publicly traded company to hold WLFI tokens with a $1.5 billion fundraising target.
Frequently Asked Questions
What triggered the recent USD1 stablecoin mint?
The $205 million mint occurred hours after Federal Reserve Governor Christopher Waller’s speech endorsing stablecoins’ potential to strengthen the dollar’s international role.
How does USD1 stablecoin rank among other stablecoins?
USD1 stablecoin currently ranks as the world’s sixth-largest stablecoin by market capitalization, behind leaders Tether and USDC.
What is the current size of World Liberty’s treasury?
Following the recent mint, World Liberty’s treasury holdings reached a record $548 million, with USD1 stablecoin comprising $212 million of this total.
What regulatory developments support stablecoin growth?
The GENIUS Act, signed last month, provides regulatory framework for payment stablecoins, with both Fed officials and SEC leadership expressing support for structured stablecoin regulation.
What other assets does World Liberty hold?
Beyond USD1 stablecoin, the project holds significant positions in Aave Ethereum USDT ($85 million) and Ether (19,650 ETH), demonstrating a diversified crypto investment strategy.
Are there plans for public trading of WLFI tokens?
World Liberty Financial is exploring creating a publicly traded company to hold WLFI tokens, targeting approximately $1.5 billion in fundraising.
