Trump-Linked World Liberty Proposes $120M Treasury Use for USD1 Expansion

World Liberty Financial has proposed using $120 million from its token treasury to support the growth of USD1, a dollar-pegged stablecoin. This plan would utilize 5% of WLFI's multi-billion dollar reserve for strategic initiatives like listings, liquidity programs, and partner incentives.

The proposal has divided the community, with some supporting rapid expansion and others concerned about potential risks to tokenomics and governance.
USD1 is backed by US government treasuries and cash equivalents, ensuring it is redeemable one-for-one with US dollars.
The stablecoin has quickly gained traction, becoming one of the larger USD-pegged tokens with a significant market cap.

World Liberty Financial, reportedly linked to the Trump family, faces added scrutiny due to political connections. The proposal will undergo a governance vote, with supporters highlighting potential benefits in liquidity and user on-ramp options and opponents questioning the short-term focus over long-term utility.

What To Watch Next

Governance vote results and formal rollout plans.
Reserve attestations and how they affect USD1's liquidity and peg stability.
Market metrics such as circulating supply and exchange flows.

If approved, the proposal could rapidly expand USD1's presence but raises significant governance and market concerns that need addressing before proceeding.