World Liberty Financial, the decentralized finance venture linked to President Donald Trump’s household, has entered the cryptocurrency lending market with the launch of World Liberty Markets.
The brand new platform permits customers to lend and borrow digital belongings, marking a significant growth for the controversial crypto enterprise.
The lending service went live on Monday, January 12, 2026, powered by Dolomite, a longtime DeFi protocol. Customers can now lend and borrow a number of cryptocurrencies together with World Liberty’s USD1 stablecoin, ETH, USDC, USDT, and tokenized Bitcoin. The platform at the moment operates on the Ethereum blockchain, with plans to broaden to further networks sooner or later.
USD1 Stablecoin Powers New Platform
On the middle of World Liberty Markets is USD1, the corporate’s dollar-backed stablecoin. Since launching in March 2025, USD1 has grown to a market worth of roughly $3.5 billion, making it one of many largest stablecoins in circulation. It now ranks simply behind PayPal’s PYUSD amongst dollar-backed tokens.
“A 12 months in the past, we got down to construct a stablecoin that might compete with the most important names in crypto, and USD1 has exceeded each expectation,” stated Zak Folkman, Co-Founder and COO of World Liberty Financial, in a company statement.
Supply: @worldlibertyfi
The lending platform offers USD1 holders new methods to earn returns on their holdings. Customers can provide USD1 to earn curiosity from debtors, or use different supported belongings as collateral to borrow USD1. This transfer goals to make USD1 extra helpful past easy transfers and buying and selling.
DeFi Lending Market Reveals Sturdy Restoration
The timing of World Liberty’s entry into crypto lending aligns with a broader restoration within the decentralized finance sector. Based on a November report from Galaxy Digital, energetic DeFi loans reached practically $41 billion by the tip of the third quarter of 2025, representing a 55% enhance from the earlier quarter.
Complete crypto lending throughout each centralized and decentralized platforms hit a brand new all-time excessive of roughly $74 billion. DeFi now accounts for 66.9% of all crypto-collateralized borrowing, up from 48.6% on the earlier peak 4 years in the past. This progress has been pushed by improved regulatory readability, higher collateral merchandise, and rising cryptocurrency costs.
The bettering regulatory atmosphere has been notably necessary. The European Union’s Markets in Crypto-Belongings framework and discussions round U.S. stablecoin laws have supplied extra certainty for establishments seeking to take part in crypto lending markets.
Partnership with Dolomite Protocol
World Liberty Markets is constructed on Dolomite, a cash market protocol recognized for its capital-efficient lending system. Dolomite permits customers to borrow towards over 100 completely different belongings whereas preserving every place separate and safe. This implies if one borrowing place faces issues, the remaining keep protected.
The partnership offers World Liberty entry to examined infrastructure slightly than constructing lending techniques from scratch. Dolomite has been working since 2022 and has acquired backing from enterprise companies together with Coinbase Ventures. Following the World Liberty announcement, Dolomite’s DOLO token surged 57% as merchants anticipated elevated platform utilization.
World Liberty executives say they plan to broaden the varieties of collateral supported over time. This might ultimately embody tokenized real-world belongings like actual property, although particular particulars stay unclear. The corporate additionally plans to launch a cellular app with built-in lending options later in 2026.
Banking Constitution and Regulatory Push
World Liberty’s lending launch comes as the corporate seeks better regulatory legitimacy. Final week, an affiliated entity filed an application with the Workplace of the Comptroller of the Forex to determine World Liberty Belief Firm, a proposed nationwide belief financial institution targeted on stablecoin operations.
If accepted, the constitution would carry USD1 below federal supervision and permit World Liberty to broaden its stablecoin providers. The transfer places World Liberty amongst a number of crypto companies looking for financial institution charters, together with Circle, Coinbase, and Paxos. Conventional banks have expressed issues about crypto firms having access to banking privileges with out full regulatory obligations.
“A nationwide belief constitution gives a transparent federal framework for custody, reserve administration, and fiduciary oversight,” stated Zach Witkoff, co-founder and CEO of World Liberty Financial. The corporate argues that correct regulation will allow stronger client protections and broader institutional participation.
Controversy and Scrutiny Proceed
Regardless of its progress, World Liberty Financial faces ongoing scrutiny over potential conflicts of curiosity. President Donald Trump is listed as “co-founder emeritus” and “chief crypto advocate” for the venture, whereas his sons Donald Trump Jr. and Eric Trump serve as “Web3 ambassadors.”
The Trump household earned a whole bunch of tens of millions of {dollars} from World Liberty Financial and associated token gross sales within the first half of 2025. Critics argue this creates problematic monetary ties for a sitting president.
The corporate’s management crew has additionally drawn questions. Co-founders Zachary Folkman and Chase Herro beforehand labored on Dough Finance, an Ethereum-based lending protocol that suffered a flash loan hack in 2024. Dolomite and Aave, the place Folkman and Herro had deliberate to deploy earlier tasks, are rivals within the crypto lending area.
World Liberty’s future plans embody partnerships with prediction markets, cryptocurrency exchanges, and actual property platforms. The corporate can also be creating a crypto debit card that will hyperlink USD1 to conventional cost techniques. Whether or not these bold plans succeed will rely upon continued platform progress, regulatory approvals, and the corporate’s potential to deal with ongoing moral issues.
The Highway Forward
World Liberty Financial’s entry into cryptocurrency lending represents a big take a look at for each the corporate and the broader DeFi business. The platform arrives at a second when institutional curiosity in crypto lending is rising and regulatory frameworks have gotten clearer. Nevertheless, the venture’s political connections and controversial background create distinctive challenges that almost all DeFi protocols don’t face.
As onchain credit score markets proceed recovering from the 2022 crash, new entrants like World Liberty might want to show they will compete on expertise and belief, not simply model recognition. The approaching months will present whether or not World Liberty Markets can set up itself as a authentic participant within the aggressive world of decentralized finance.
