Trump-Affiliated World Liberty Launches Lending Platform—A Conflict Of Interest?


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World Liberty Financial (CRYPTO: WLFI), backed by President Donald Trump’s family, launched World Liberty Markets, a DeFi lending platform for its USD1 stablecoin worth $3.4 billion, even as critics point to conflicts of interest tied to Trump’s $800 million crypto income in 2025.

World Liberty Markets allows users to lend and borrow digital assets using USD1 alongside collateral including Ethereum (CRYPTO: ETH), USDC, USDT, tokenized Bitcoin (CRYPTO: BTC), and the WLFI governance token. The platform is powered by Dolomite protocol.

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Users can currently borrow USD1 by paying roughly 0.83% interest or lend it out to earn 0.08%, though these rates will likely shift as more money flows into the platform.

USD1 has grown to $3.4 billion in circulation since its March 2025 debut, making it one of the largest dollar-backed stablecoins behind only major players like Tether, Circle (NYSE:CRCL), and PayPal’s (NASDAQ:PYPL) PYUSD.

The rollout aligns with a broader recovery in crypto credit markets.

A November report from Galaxy Digital found active DeFi loans climbed to nearly $41 billion by the end of Q3 2025, pushing total crypto lending to a new all-time high of roughly $74 billion.

World Liberty lists Trump and his sons as co-founders, creating a situation where a sitting president profits from a crypto business he’s publicly associated with.

A Reuters investigation from October found the Trump family earned hundreds of millions from World Liberty Financial and related token sales in the first half of 2025.

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Roughly $463 million came from WLFI token sales alone, with total crypto income exceeding $800 million across Trump-linked ventures.

That income eclipses what Trump makes from his traditional businesses like golf courses and real estate licensing deals.

The president also earned tens of millions from WLFI sales in 2024 before taking office.

World Liberty argues Trump doesn’t run day-to-day operations—those fall to crypto executives like co-founder Zach Folkman.

But critics say the distinction doesn’t matter when the president’s name is on the project and he’s making hundreds of millions from it.

World Liberty applied for a national bank charter just last week, seeking permission to issue and custody USD1 internally without relying on third parties.

If approved, the move would put USD1 under federal banking supervision.

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The application came to the Office of the Comptroller of the Currency—a regulatory body that reports to the Treasury Department, which reports to the president. Critics see this as another layer of potential conflict.

Folkman said the lending platform will eventually accept more types of collateral, possibly including tokenized Trump Organization real estate.

Moreover, the company plans to roll out a mobile app and debit card for USD1 later this year.

WLFI has recovered 86% from October’s $0.09 low after crashing 82% from September’s $0.28 peak.

Upside Targets: $0.18791 (SAR) is immediate resistance. Breaking that opens $0.20 psychological level, then $0.22-$0.24 range. Clearing $0.25 targets the $0.28 former high.

Downside Risks: $0.15681 (middle BB) is first support. Loss of $0.14 risks retest of $0.12892 (lower BB). Breaking $0.12 threatens the entire recovery.

Image: Shutterstock

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This article Trump-Affiliated World Liberty Launches Lending Platform—A Conflict Of Interest? originally appeared on Benzinga.com

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