Following Waller's comments, World Liberty Financial issued USD1 tokens worth $205 million. The market cap for Trump's stablecoin rises to $2.4 billion, advancing to the 6th position globally.
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The Trump family's stablecoin project, World Liberty Financial, achieved a new milestone after issuing $205 million worth of USD1 for its treasury last Thursday, raising its market value to $2.4 billion.
This significant rise - the first since April - comes just hours after Federal Reserve Governor Christopher Waller expressed his support for stablecoins, sparking speculation about whether the central bank's signals are stimulating the growth of private cryptocurrencies.
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The rise in the market cap of Trump's stablecoin comes after the pro-cryptocurrency speech by Federal Reserve Governor Waller
In a post on platform X, the World Liberty Financial project announced the issuance of these tokens, stating that the USD1 is "the fastest-growing stablecoin ever," and confirming that it is fully backed by the U.S. dollar (USD) and Treasury bonds.
We just minted $205,000,000 of USD1 for the WLFI Treasury
The fastest-growing stablecoin of all time continues to scale. Backed 1:1 by USD and U.S. Treasuries. Transparent. Reliable. Built for the future of global finance.
$USD1 | $WLFI
— WLFI (@worldlibertyfi) August 20, 2025
Since its launch in April, this coin has experienced rapid growth to become the sixth largest stablecoin in the world according to CoinGecko data, preceded by leading stablecoins such as Tether (USDT) which contributes the most to the sector at 60% with a market cap of $167 billion, and USD Coin (USDC) from Circle at 24% with a market cap of $67.4 billion.
The timing of the project's issuance of its tokens has sparked significant interest following Waller's remarks at the annual blockchain forum in Wyoming last Wednesday. In one of the most pro-stablecoin speeches from a sitting Federal Reserve governor, Waller stated that "there are no concerns" about digital payments and decentralized finance.
Christopher Waller, Member of the Federal Reserve Board of Governors of the United States, says that distributed ledger is a technology. According to him, the Fed is looking at how they can use smart contracts in the payment system in the United States. The signal is super strong that… pic.twitter.com/Jm9XKHe0jc
— Sergii Gerasymovych (@SergiiGera) August 20, 2025
Waller noted that stablecoins and transactions on the blockchain operate on the same principle as card payment transactions and praised the recently passed GENIUS Act, indicating it represents "an important step" towards widespread adoption.
Waller's statements come after major political shifts indicating that the Federal Reserve is adopting a less strict approach. In April, the central bank withdrew its 2022 guidance urging banks not to engage in stablecoin activities.
Last week, the central bank also canceled its cryptocurrency transaction monitoring program, while Vice President Michelle Bowman suggested allowing Federal Reserve employees to hold small amounts of cryptocurrencies to better understand this technology.
Given that Waller is now one of the frontrunners to succeed Jerome Powell when his term at the Federal Reserve ends in 2026, his pro-cryptocurrency views could gain increasing importance in shaping U.S. monetary policy.
It is likely that the market cap of stablecoins -currently at $280 billion- will rise to trillions of dollars. Goldman Sachs predicted this week that the adoption of stablecoins would attract "trillions of dollars" to digital finance, noting that the transaction volume of $7 trillion last quarter suggests significant shifts in the financial system.
The U.S. Treasury Department also predicted that the market cap of stablecoins could reach $2 trillion by 2028, noting that a clear regulatory framework would boost demand for Treasury bonds. These developments may explain the growing interest in the USD1 coin from the World Liberty Financial project, as unlike most stablecoins focused on decentralized finance (DeFi), this Trump-backed coin claims to provide a tool for sovereign deals and institutional treasuries.
Prominent cryptocurrency analyst VirtualBacon noted that the market cap of USD1 could rise to $100 billion if it successfully contributes -even at a low rate- to the large market of U.S. Treasury bonds, indicating that this coin is "suitable for family offices in the Middle East and sovereign wealth funds."
WLFI’s USD1 stablecoin could become the #3 stable by maturity. Unlike DeFi-focused stables, it’s targeting treasuries, sovereign deals, and Middle Eastern family offices.
Going from $2B to $100B supply is realistic when the Treasury market is trillions. That’s the opportunity. pic.twitter.com/uLxzu02kku
— VirtualBacon (@VirtualBacon0x) August 20, 2025
On the other hand, the rise in the market cap of USD1 also comes amid a significant growth wave for stablecoins in general, while one report notes that July saw the market grow for the twenty-second consecutive month, with the total value of these coins reaching $261 billion.
The World Liberty project intends to launch a treasury company in conjunction with the increasing adoption of World Liberty Financial (WLFI) and USD1.
The main Trump family project in the digital currency sector, World Liberty Financial, is seeking to raise $1.5 billion to launch a public treasury company for the World Liberty Financial coin, along with other cash reserves.
Investor documents show that Eric Trump and Donald Trump Jr. are likely to be board members. If this company is launched, it will contribute to increasing the Trump family's involvement in the digital assets sector.
The World Liberty project, launched last fall, introduced the World Liberty Financial coin and the USD1 stablecoin; it is said that their sales value reached $550 million. According to Nansen, the latest data from the project indicates it holds $548 million in its treasury, with USD1 being its largest digital asset at $212 million, which is about 39% of the total holdings.
Moreover, the project's investment portfolio includes $85 million worth of Tether on the Aave Ethereum blockchain protocol (Aave Ethereum USDT-AETHUSDT), alongside 19,650 Ethereum coins (Ethereum-ETH) worth $85 million. The project is also continuously purchasing ETH, having bought $1 million worth of this coin on July 29, adding 256.75 coins to its treasury at an average price of $3,895. A week earlier, the project purchased coins worth $2 million, along with swapping $13 million for 3,473 Ethereum coins earlier in the same month. Since May, the project’s platform has purchased 77,226 Ethereum coins worth approximately $296 million, with unrealized gains of $41.7 million.
The project is currently working on developing its roadmap for decentralized finance. Updates published in June indicated the activation of the bridging feature for the USD1 stablecoin, with swap and lending features to be launched "soon," along with a dedicated application.
We’re proud to back Falcon Finance with a $10M investment. USD1 is the fastest growing fiat-backed stablecoin—and now it’s live as collateral on Falcon. Together, we’re setting a new onchain standard for the dollar.
Let’s build.https://t.co/2Zout8PmGF
— WLFI (@worldlibertyfi) July 31, 2025
On June 31, World Liberty announced a $10 million investment in Falcon Finance, noting it provides the first comprehensive collateral system for liquidity and returns on the blockchain. USD1 can now be used as collateral on the Falcon platform, enhancing its position in the continuously growing stablecoin market.
The post The market cap of a stablecoin close to Trump reaches $2.4 billion after issuing tokens worth $205 million, has it been stimulated by the statements of Federal Reserve officials? appeared first on Cryptonews Arabic.
