World Liberty Financial Launches Cryptocurrency Lending Platform as DeFi Market Rebounds

The new platform allows users to lend and borrow digital assets, marking a major expansion for the controversial crypto venture.

The lending service went live on Monday, January 12, 2026, powered by Dolomite, an established DeFi protocol. Users can now lend and borrow several cryptocurrencies including World Liberty’s USD1 stablecoin, ETH, USDC, USDT, and tokenized Bitcoin. The platform currently operates on the Ethereum blockchain, with plans to expand to additional networks in the future.

USD1 Stablecoin Powers New Platform

At the center of World Liberty Markets is USD1, the company’s dollar-backed stablecoin. Since launching in March 2025, USD1 has grown to a market value of approximately $3.5 billion, making it one of the largest stablecoins in circulation. It now ranks just behind PayPal’s PYUSD among dollar-backed tokens.

“A year ago, we set out to build a stablecoin that could compete with the biggest names in crypto, and USD1 has exceeded every expectation,” said Zak Folkman, Co-Founder and COO of World Liberty Financial, in a company statement.

Source: @worldlibertyfi

The lending platform gives USD1 holders new ways to earn returns on their holdings. Users can supply USD1 to earn interest from borrowers, or use other supported assets as collateral to borrow USD1. This move aims to make USD1 more useful beyond simple transfers and trading.

DeFi Lending Market Shows Strong Recovery

The timing of World Liberty’s entry into crypto lending aligns with a broader recovery in the decentralized finance sector. According to a November report from Galaxy Digital, active DeFi loans reached nearly $41 billion by the end of the third quarter of 2025, representing a 55% increase from the previous quarter.

Total crypto lending across both centralized and decentralized platforms hit a new all-time high of approximately $74 billion. DeFi now accounts for 66.9% of all crypto-collateralized borrowing, up from 48.6% at the previous peak four years ago. This growth has been driven by improved regulatory clarity, better collateral products, and rising cryptocurrency prices.

The improving regulatory environment has been particularly important. The European Union’s Markets in Crypto-Assets framework and discussions around U.S. stablecoin legislation have provided more certainty for institutions looking to participate in crypto lending markets.

Partnership with Dolomite Protocol

World Liberty Markets is built on Dolomite, a money market protocol known for its capital-efficient lending system. Dolomite allows users to borrow against over 100 different assets while keeping each position separate and secure. This means if one borrowing position faces problems, the rest stay protected.

The partnership gives World Liberty access to tested infrastructure rather than building lending systems from scratch. Dolomite has been operating since 2022 and has received backing from venture firms including Coinbase Ventures. Following the World Liberty announcement, Dolomite’s DOLO token surged 57% as traders anticipated increased platform usage.

World Liberty executives say they plan to expand the types of collateral supported over time. This could eventually include tokenized real-world assets like real estate, though specific details remain unclear. The company also plans to launch a mobile app with integrated lending features later in 2026.

Banking Charter and Regulatory Push

World Liberty’s lending launch comes as the company seeks greater regulatory legitimacy. Last week, an affiliated entity filed an application with the Office of the Comptroller of the Currency to establish World Liberty Trust Company, a proposed national trust bank focused on stablecoin operations.

If approved, the charter would bring USD1 under federal supervision and allow World Liberty to expand its stablecoin services. The move puts World Liberty among several crypto firms seeking bank charters, including Circle, Coinbase, and Paxos. Traditional banks have expressed concerns about crypto companies gaining access to banking privileges without full regulatory obligations.

“A national trust charter provides a clear federal framework for custody, reserve management, and fiduciary oversight,” said Zach Witkoff, co-founder and CEO of World Liberty Financial. The company argues that proper regulation will enable stronger consumer protections and broader institutional participation.

Controversy and Scrutiny Continue

Despite its growth, World Liberty Financial faces ongoing scrutiny over potential conflicts of interest. President Donald Trump is listed as “co-founder emeritus” and “chief crypto advocate” for the project, while his sons Donald Trump Jr. and Eric Trump serve as “Web3 ambassadors.”

The Trump family earned hundreds of millions of dollars from World Liberty Financial and related token sales in the first half of 2025. Critics argue this creates problematic financial ties for a sitting president.

The company’s leadership team has also drawn questions. Co-founders Zachary Folkman and Chase Herro previously worked on Dough Finance, an Ethereum-based lending protocol that suffered a flash loan hack in 2024. Dolomite and Aave, where Folkman and Herro had planned to deploy earlier projects, are competitors in the crypto lending space.

World Liberty’s future plans include partnerships with prediction markets, cryptocurrency exchanges, and real estate platforms. The company is also developing a crypto debit card that would link USD1 to traditional payment systems. Whether these ambitious plans succeed will depend on continued platform growth, regulatory approvals, and the company’s ability to address ongoing ethical concerns.

The Road Ahead

World Liberty Financial’s entry into cryptocurrency lending represents a significant test for both the company and the broader DeFi industry. The platform arrives at a moment when institutional interest in crypto lending is growing and regulatory frameworks are becoming clearer. However, the project’s political connections and controversial background create unique challenges that most DeFi protocols don’t face.

As onchain credit markets continue recovering from the 2022 crash, new entrants like World Liberty will need to prove they can compete on technology and trust, not just brand recognition. The coming months will show whether World Liberty Markets can establish itself as a legitimate player in the competitive world of decentralized finance.