USDT Faces New Competition as Trump-Linked USD1 Stablecoin Powers Crypto Lending Platform

In a significant development within the stablecoin and decentralized finance (DeFi) sector, World Liberty Financial—a firm with notable ties to the Trump family—has officially launched World Liberty Markets. This new crypto lending platform is uniquely structured around its proprietary USD1 stablecoin, which serves as the primary collateral asset. The USD1 token, pegged to the US dollar, has rapidly achieved a substantial market capitalization of $3.4 billion. This positions it as a major player in the stablecoin ecosystem, currently trailing only behind giants like Tether's USDT, Circle's USDC, and PayPal's PYUSD in terms of market presence and adoption. The launch of World Liberty Markets signifies a strategic move to bridge traditional financial influence with innovative crypto-financial services. The platform is designed to accept a wide array of digital assets as collateral, including ethereum (ETH), tokenized versions of Bitcoin (such as WBTC), and competing stablecoins like USDC and USDT. This inclusive collateral policy aims to attract a broad user base, from retail investors to institutional players, by offering liquidity and lending services against their existing crypto holdings. The backing by a politically connected entity adds a layer of mainstream credibility and could accelerate institutional adoption of crypto-backed financial products. From a market perspective, the rise of USD1 introduces new dynamics for established stablecoins like USDT. While USDT remains the dominant stablecoin by market cap and liquidity, the entry of a well-capitalized, politically-linked competitor could fragment market share and spur innovation in yield products and collateral efficiency. For the broader crypto market, this development is bullish. It represents deepening integration between crypto-native services and entities with traditional financial and political clout, potentially driving greater regulatory clarity and institutional capital inflows. The growth of sophisticated lending platforms backed by substantial stablecoins also enhances the overall utility and maturity of the DeFi ecosystem, supporting more complex financial instruments and risk management strategies. As of early 2026, this trend underscores the ongoing evolution of digital assets toward becoming a core component of global finance.

Trump-Linked Firm Launches Crypto Lending Platform Backed by USD1 Stablecoin

World Liberty Financial, a firm with ties to the TRUMP family, has launched World Liberty Markets - a crypto lending platform leveraging its USD1 stablecoin as collateral. The dollar-pegged token now commands a $3.4 billion market capitalization, positioning it among the top stablecoins behind PayPal's PYUSD.

The platform accepts diverse collateral including Ether, tokenized Bitcoin, USDC, and USDT, with plans to incorporate tokenized real-world assets. This comes as DeFi lending activity shows strong recovery, with Galaxy Digital reporting nearly $41 billion in active loans by Q3 2025.

In a strategic MOVE to bolster adoption, World Liberty has applied for a national trust bank charter with the U.S. Office of the Comptroller of the Currency. The platform's architecture combines the USD1 stablecoin with WLFI governance tokens, creating a hybrid centralized-decentralized financial product.

Visa Partners With BVNK to Enable Stablecoin Payouts

Visa has forged a strategic partnership with payments firm BVNK to facilitate stablecoin payouts, enabling businesses to send digital currency directly to wallets. The collaboration could funnel up to $30 billion in stablecoin flows through BVNK into Visa’s global network, which processes approximately $1.7 trillion in transactions annually.

The move underscores Visa’s deepening commitment to blockchain-based payment solutions, reflecting surging corporate demand for faster, more efficient settlement mechanisms. Stablecoins—digital assets pegged to fiat currencies—are increasingly seen as bridges between traditional finance and decentralized systems.

This initiative signals broader institutional adoption of crypto infrastructure, with Visa positioning itself at the intersection of legacy finance and digital asset innovation. Market observers note the deal could accelerate mainstream acceptance of stablecoins for cross-border transactions.

Upbit Embraces USDe: A New Era for South Korean Crypto Trading

South Korea's premier cryptocurrency exchange, Upbit, is set to integrate the synthetic stablecoin USDe, developed by Ethena, into its platform. The coin will be paired with South Korean won, Bitcoin, and USDT, with trading support launching at 6:00 PM KST on January 14th. Transactions will be exclusively processed via the Ethereum network.

Upbit has implemented measures to curb volatility during the initial trading phase. Buy orders will face temporary restrictions, and only limit orders will be permitted for a set period. The exchange has also established price thresholds to prevent drastic sell-offs.

USDe's introduction marks a significant step in the adoption of synthetic assets in South Korea's crypto market. The move aligns with broader industry trends toward stablecoin diversification and institutional-grade financial instruments.