Waller blesses WLFI minting: $205M USD1 ties the stablecoin linked to Trump to $2.4B, jumping to sixth globally.
The stablecoin project World Liberty Financial (WLFI), supported by the Trump family, reached a new milestone on Thursday by minting $205 million worth of $1, bringing the total supply of the token to $2.4 billion.
This significant increase is the first since April, occurring just hours after Federal Reserve Governor Christopher Waller delivered a speech supporting stablecoins, sparking speculation about whether central bank signals are driving the growth of private cryptocurrencies.
The Trump stablecoin surged after Federal Reserve Governor Waller gave a speech supporting cryptocurrencies.
WLFI announced the minting in a post to X, stating that USD1 is 'the fastest-growing stablecoin ever,' emphasizing its full backing by dollars and Treasury bills.
According to CoinGecko data, since its launch in April, USD1 has rapidly ascended to become the sixth-largest stablecoin globally.
It trails behind industry leader Tether (USDT), which dominates with a market cap of $167 billion and a 60% share, and Circle's USDC, valued at $67.4 billion with a 24% market share.
The timing of WLFI's latest minting drew attention after Waller's comments at a blockchain seminar in Wyoming on Wednesday. In one of the most pro-crypto speeches by a sitting Federal Reserve governor, Waller stated there is 'nothing to fear' in digital payments and decentralized finance.
He believes that stablecoins and blockchain transactions operate similarly to debit card payments and hailed recent legislation (guiding and establishing the U.S. Stablecoin National Innovation Act) (GENIUS Act) as an 'important step' towards adoption.
Waller's comments came after a series of policy shifts indicating a softening stance from the Federal Reserve. In April, the central bank withdrew guidance from 2022 that prevented banks from engaging in stablecoin-related activities.
Just last week, it canceled a regulatory plan overseeing cryptocurrency operations, while Vice Chair Michelle Bowman allowed Federal Reserve staff to hold small amounts of cryptocurrency to better understand the technology.
Waller is now seen as a frontrunner to succeed Jerome Powell after his term ends in 2026, with his pro-crypto views likely to play an increasingly significant role in shaping U.S. monetary policy.
The stablecoin market has reached a value of $280 billion, with expectations of growth into the trillions. Goldman Sachs predicted this week that the adoption of stablecoins could bring 'trillions of dollars' to digital finance, noting that last quarter's $7 trillion in trading volume is a sign that the financial system is at a transformative tipping point.
The U.S. Treasury estimates that by 2028, the market size could reach $2 trillion, noting that a clear regulatory framework would accelerate demand for U.S. Treasuries.
This context explains the growing interest in WLFI's USD1. Unlike most stablecoins focused on DeFi, the Trump-linked token positions itself as a tool for sovereign trading and institutional Treasuries.
Influential cryptocurrency analyst VirtualBacon pointed out that if USD1 captures a small portion of the vast U.S. Treasury market, it could actually rise to a supply of $10 billion, describing it as 'tailored for Middle Eastern family offices and sovereign wealth funds.'
The surge of $1 also occurred amid a broader wave of stablecoin expansion. A report indicated that July marked the 22nd consecutive month of growth for the market, with total market capitalization climbing to $261 billion.
With the growth of WLFI and USD1 adoption, World Liberty plans to collaborate with financial companies.
World Liberty Financial, the flagship cryptocurrency venture of the Trump family, is seeking $1.5 billion in financing to establish a publicly traded financial company that will hold its WLFI tokens and cash reserves.
Investor documents show that Eric Trump and Donald Trump Jr. are expected to join the board. If completed, the deal would expand the Trump family's growing involvement in digital assets.
World Liberty launched last fall, introducing the WLFI token and its stablecoin USD1, reportedly generating $550 million in sales. According to Nansen, recent data shows WLFI's treasury holding at $548 million, with USD1 now being its largest crypto asset at $212 million, accounting for 39% of the total.
Its portfolio also includes $85 million in Aave Ethereum USDT and $85 million worth of 19,650 ETH.
The group has also been steadily accumulating Ethereum. On July 29, World Liberty purchased $1 million worth of ETH at an average price of $3,895, increasing its holdings by 256.75. A week prior, it bought $2 million worth and exchanged $13 million in early July for 3,473 ETH.
Since May, the platform has acquired 77,226 ETH, worth approximately $296 million, with unrealized profits of $41.7 million.
In addition to token accumulation, the project is advancing its decentralized finance roadmap. An update released in June revealed real-time bridging capabilities for its $1 stablecoin, including exchange, lending, and application modules marked as 'coming soon.'
On June 31, World Liberty announced a $10 million investment in Falcon Finance, calling it the first universal collateral infrastructure for on-chain liquidity and yield. USD1 is now live as collateral for Falcon, further positioning it in the growing stablecoin market.
