World Liberty Financial Enters Crypto Lending as Onchain Credit Demand Grows

The World Liberty Financial, a decentralized finance (DeFi) project linked to the family of US President Donald Trump, has officially entered the cryptocurrency lending market.

The company launched a new product called World Liberty Markets, which allows users to borrow and lend digital assets through an on-chain platform. The move reflects renewed interest in crypto-based credit as regulatory clarity improves and the industry becomes more mature.

The platform is built around USD1, World Liberty’s US dollar–backed stablecoin, and its governance token, WLFI. Users can deposit collateral such as Ether (ETH), a tokenized version of Bitcoin (BTC), and major stablecoins like USDC and USDT. In return, they can borrow other digital assets, creating a full lending and borrowing marketplace on the blockchain.

World Liberty co-founder Zak Folkman said the platform plans to expand its list of supported collateral in the future. This could include tokenized real-world assets (RWAs) such as property or other traditional financial instruments. The company is also exploring partnerships with prediction markets, crypto exchanges, and real estate platforms to grow its ecosystem.

Crypto Lending Rebounds as Regulation Improves

USD1 has already seen strong growth, reaching a market capitalization of $3.4 billion. World Liberty recently applied for a national trust bank charter from the US Office of the Comptroller of the Currency. If approved, this would help the company expand USD1’s use in cross-border payments and treasury services.

Interest in crypto lending is rising again as investors look for ways to access liquidity without selling their assets. This time, the industry is focusing more on transparency, on-chain risk controls, and regulatory oversight. Past failures like Celsius and BlockFi were mainly caused by poor risk management and centralized systems, not by blockchain technology itself.

DeFi lending activity has surged in recent years, with strong growth recorded in October, according to DefiLlama. Centralized platforms like Nexo now offer zero-interest loans backed by Bitcoin and Ether. Meanwhile, projects such as Babylon have attracted major investment, including $15 million from a16z Crypto, to build Bitcoin-based lending infrastructure.