World Liberty Financial has expanded the utility of its USD1 stablecoin by making it available in on-chain lending and borrowing, moving an asset with an estimated $3.4 billion market cap into active use. The launch shifts USD1 from passive holdings into live balance-sheet activity inside a lending stack.
The timing is consequential because the rollout pairs yield-bearing usage with an ongoing push for federal banking authorization. That combination increases liquidity opportunities while elevating counterparty, governance, and policy-linked risk for market participants.
World Liberty Markets goes live on Dolomite rails
On January 12, 2026, World Liberty Markets launched as a Dolomite-powered web app that enables users to supply assets to earn yield and borrow against collateral. The platform positions USD1 as a funding and liquidity asset within a decentralized lending workflow.
The initial supported set includes USD1, WLFI, Ether, tokenized Bitcoin, USDC, and USDT, with USD1 entering the same lending venue as larger, established stablecoins. This places USD1 directly into borrowing demand and pool-based risk dynamics rather than simple wallet storage.
Moving a multi-billion-dollar stablecoin into lending markets can improve circulation and utility, but it also increases composability and stress transmission across pools. If pressure hits lending markets, USD1 exposure becomes a practical channel for contagion rather than a theoretical headline metric.
The bank charter effort adds a regulatory overlay
Earlier in January 2026, WLTC Holdings, a World Liberty subsidiary, filed for a national trust bank charter with the U.S. Office of the Comptroller of the Currency, around January 7–8. The application aims to secure federal authorization to issue and custody USD1 under a regulated structure.
At the same time, the project faces scrutiny tied to delayed attestation reports and broader transparency questions referenced in public commentary. A rapid climb to multi-billion scale alongside a trust charter bid creates a heightened policy and diligence burden.
For lenders and borrowers, the near-term task is straightforward: spreads and risk limits must reflect the token’s operational and disclosure profile, not just its market cap. Institutional counterparties will likely re-evaluate custody posture and attestation cadence before scaling USD1-denominated exposure.
