- World Liberty Financial proposes using 5% of treasury for USD1.
- Focus on CeFi and DeFi partnerships to support growth.
- USD1 sees rapid adoption, reaching $3B TVL in six months.
World Liberty Financial proposes utilizing less than 5% of its treasury to enhance USD1 stablecoin adoption, detailed in a governance forum proposal on November 1, 2023.
The plan aims to support USD1’s $3B TVL growth by leveraging incentives in CeFi and DeFi, potentially boosting demand for WLFI-governed services.
World Liberty Financial (WLFI) has put forward a proposal to allocate less than 5% of its unlocked $WLFI treasury to support the USD1 stablecoin. The strategy involves offering incentives through strategic CeFi and DeFi partnerships to encourage further adoption.
The proposal was shared on WLFI’s governance forum, reflective of USD1’s growth to nearly $3 billion total value locked (TVL) in just six months. Zak Folkman, the Co-Founder of WLFI, expressed the initiative’s potential impact on stablecoin usage.
This move seeks to bolster digital dollar use among institutional investors globally. WLFI’s assets, gathered from ALT5 Sigma’s $1.5B share sale, fund the proposal alongside BitGo-backed reserves ensuring USD1’s stability.
Financial markets could witness a substantial increase in stablecoin circulation, affecting both centralized and decentralized platforms. The proposal anticipates increased demand for WLFI-governed services, although specific partnerships remain unnamed.
Observers anticipate a landscape transformed by WLFI’s decision, particularly involving the digital dollar’s role in institutional transactions. Historical precedents for such treasury allocations remain limited, adding a layer of significance to WLFI’s plan.
By yielding less than 5% of treasury resources, WLFI endeavors to catalyze USD1’s utility and integration into wider financial systems. This move could influence regulatory frameworks and technological advancements related to digital currencies.
“Institutions around the world, from sovereign entities to global asset managers, are looking for a trusted and purely digital U.S. dollar. Our intention to deploy USD1 on Canton will allow regulated institutions to transact securely and privately while leveraging the programmability and efficiency of blockchain technology.” — Zak Folkman, Co-Founder and Chief Operating Officer, World Liberty Financial
