The Trump family-backed World Liberty Financial (WLFI), a decentralized finance (DeFi) project, has greatly increased the supply of its USD1 stablecoin by minting $205 million, which is a 9% rise. A post on X on August 20, 2025, announced this change, which has brought the stablecoin’s total supply to an all-time high of $2.4 billion, the biggest increase since April.
The minting is part of a bigger plan to improve WLFI’s treasury and make USD1 more important in the competitive stablecoin market.
This development is interesting since it comes just after Federal Reserve Governor Christopher Waller spoke at a blockchain symposium in Wyoming and praised stablecoins for their potential to make the U.S. dollar more important around the world. Waller’s backing, along with the new GENIUS Act, shows that regulators are becoming more supportive of stablecoins. This probably played a role in WLFI’s decision to increase USD1 production.
The $205 million mint has made WLFI’s finances stronger. Nansen, a blockchain analytics company, said that the project’s treasury holdings have reached an all-time high of $548 million. USD1 now makes up 39% of the portfolio at $212 million.
Other important assets are $85 million worth of Aave Ethereum USDT (AETHUSDT) and the same amount of Ether (ETH), with WLFI holding 19,650 ETH. This varied portfolio shows that WLFI wants to become a key player in DeFi.
The USD1 stablecoin, which came out in April 2025, has swiftly become the sixth-largest stablecoin in the world by market valuation. USD1’s market valuation of $167 billion is less than that of industry heavyweights like Tether (USDT) and Circle’s USDC ($67.4 billion). Still, its quick growth shows that it is popular, especially with investors who enjoy its political branding and regulatory compliance.
Waller’s lecture talked about how stablecoins may improve payments in stores and across borders. He pointed to the GENIUS Act as an important step in making the sector more legitimate. Securities and Exchange Commission Chair Paul Atkins said the law was a “seminal step” for U.S. policy, echoing this feeling. These new rules have made things better for USD1, which has boosted investor confidence and pushed WLFI’s aggressive growth strategy.
Analysts say that USD1’s rise shows that more institutions are interested in stablecoins, especially because Treasury Secretary Scott Bessent is looking into how they could be used in U.S. fiscal policy. Talks about using stablecoin reserves to help the government issue debt suggest that these coins may be becoming more popular in the mainstream, making USD1 a crucial player in this changing market.
WLFI is not sitting back and enjoying its success. The project is planning to start a publicly traded company to hold WLFI tokens, to raise $1.5 billion. Also, the fact that USD1 will soon be listed on Coinbase and that holders will be able to join a reward program shows that the company wants to increase its user base.
As backing from regulators and demand from institutions develop, USD1 is ready to take on established stablecoins. Its unique mix of political power and financial innovation might change the DeFi ecosystem.
