Politics, stablecoins, and a token launch valued in the tens of billions — that’s the backdrop for the new Trump-linked project World Liberty Financial (WLFI). With backing from the Trump family and early trading valuations as high as $25 billion, WLFI is being promoted as an alternative to the traditional banking system. Yet, behind the hype, questions remain about its sustainability.
Political Context
Eric Trump has said the idea for WLFI came after the family was cut off by several banks. He noted that Capital One shut down over 300 accounts tied to family businesses overnight after two decades of activity. The project is framed as a response — a DeFi ecosystem that provides U.S. citizens with new access to financial services. At its core are the WLFI token and a stablecoin, USD1, pegged to U.S. Treasuries (USD1 Dune Data).
Technical Setup and Partners
WLFI is built on Ethereum and Binance Smart Chain, integrating a DEX, lending/borrowing functions, and stablecoin infrastructure. The project initially claimed that Aave would receive 7% of WLFI’s supply and 20% of protocol fees, potentially boosting Aave’s token price. However, this was later denied by WLFI’s team, as reported by Colin Wu (Aave Governance Proposal).
The WLFI team told WuBlockchain that the claim that "Aave will receive 7% of the total WLFI token supply" is false and fake news. Previously, a community member claimed that, according to a previously released proposal, AaveDAO would receive 20% of the protocol fees generated by…
— Wu Blockchain (@WuBlockchain) August 23, 2025
Other backers include Justin Sun (Tron) and DWF Labs, who say they have invested millions. WLFI’s treasury structure involves Alt5, expected to hold around 7.5% of all WLFI tokens and act as a capital markets bridge. Bloomberg has also reported that WLFI plans to create a listed holding company to improve token tradability.
Valuation and Market Risks
Before trading even began, WLFI was priced on exchanges like Bybit and Blofin with a fully diluted market cap between $23B and $30B — putting it alongside Cardano or Dogecoin. Yet only 5% of tokens are initially liquid, raising concerns about manipulation. The Trump Token (TRUMP) launched earlier this year had early momentum but has since lost much of its value
Political Leverage Meets Crypto
WLFI set up a treasury structure through Alt5, which is expected to hold about 7.5% of the tokens and serve as a link to capital markets. According to Bloomberg, the project also wants to create a listed holding company to make token trading easier
Before trading started, WLFI was already valued on platforms like Bybit and Blofin at $23–30 billion, similar to networks such as Cardano or Dogecoin. But only around 5% of tokens are available in the market, which raises concerns about low liquidity and possible manipulation. The earlier Trump Token (TRUMP) had a strong start but later lost most of its value
WLFI also comes with a political angle. The stablecoin USD1 is presented as a competitor to USDT and USDC, advertised as being backed by U.S. Treasuries. U.S. Treasury Secretary Scott Bessent said stablecoins could help strengthen the dollar’s role as the world’s reserve currency. At the same time, Trump’s recent crypto proposals may have added speculative interest to the project.
We believe the United States should be the premier destination for digital assets.
— Treasury Secretary Scott Bessent (@SecScottBessent) May 7, 2025
Digital assets are an important source of innovation that can drive usage of the U.S. dollar around the world with stablecoin legislation. pic.twitter.com/ZqWVMrjYaD
In short, WLFI has well-known backers, political support, and technical infrastructure. Still, the small amount of tradable tokens, high valuation, and comparison with the Trump memecoin show clear risks. It could become a working model for a new stablecoin — or turn into another bubble.
