The post World Liberty Financial Proposes $120M Treasury Move to Scale USD1 Stablecoin appeared first on Coinpedia Fintech News
World Liberty Financial is considering a major treasury move that could reshape the future of its USD1 stablecoin, and the community is split.
The Trump family-backed crypto project has proposed using $120 million from its WLFI token treasury to expand adoption of its U.S. dollar–pegged stablecoin, USD1, as competition in the stablecoin market heats up.
The proposal, posted Wednesday on World Liberty Financial’s governance forum, calls for allocating 5% of the WLFI treasury to grow USD1’s circulating supply and push integrations across both centralized and decentralized finance platforms.
Why World Liberty Financial Is Pushing USD1 Now
According to the team, the stablecoin market is becoming increasingly crowded.
The proposal argues that expanding USD1’s supply would help embed the stablecoin deeper into crypto infrastructure.
As the team explained, “As USD1 grows, more users, platforms, institutions, and chains integrate with World Liberty Financial infrastructure.”
They added that higher circulation strengthens the broader ecosystem governed by WLFI holders, creating demand for liquidity incentives, integrations, and ecosystem programs.
In short, USD1 growth is being positioned as a direct driver of WLFI’s long-term relevance.
Community Reaction Remains Divided
Not everyone is convinced.
The governance vote is currently live, offering options to vote for, against, or abstain. Early responses show opposition narrowly leading, reflecting unease among some WLFI holders.
Supporters argue the treasury deployment could reward partners building on USD1 and help the project compete with established players. Some have suggested directing funds toward decentralized exchanges on Ethereum and Solana, as well as major centralized exchanges.
Critics, however, have raised concerns about unlocking treasury tokens too early, with some calling for broader supply releases or clearer governance rules before moving forward.
Where USD1 Stands in the Stablecoin Market
USD1 launched in March and has grown quickly, now holding a $2.74 billion market cap, making it the seventh-largest USD-pegged stablecoin.
The proposal follows recent treasury activity, including a $10 million WLFI token buyback using USD1 and reported liquidity support from market maker DWF Labs.
If approved, the $120 million allocation would mark a key test for World Liberty Financial.