Trump-Backed World Liberty Financial Launches Crypto Lending Platform: World Liberty Markets on Dolomite – DOLO Token Surges Over 60%
In a major development for decentralized finance (DeFi) and stablecoin adoption, World Liberty Financial (WLFI) — the high-profile cryptocurrency project closely affiliated with former U.S. President Donald Trump and his family — officially launched its first on-chain lending and borrowing platform on January 12, 2026. Named World Liberty Markets, the new DeFi web application integrates with the established Dolomite protocol to enable users to lend assets for yield or borrow against collateral, with a strong focus on expanding utility for WLFI's dollar-backed stablecoin, USD1.
This launch marks a pivotal step in WLFI's ambitious roadmap to bridge traditional finance with blockchain technology, especially as the project simultaneously pursues a U.S. national bank charter. The announcement has already triggered significant market reactions, including a dramatic price surge in Dolomite's native token $DOLO, which jumped 57–68% within 24 hours amid heightened trading volume and speculation.
What is World Liberty Markets? Key Features and How It Works
World Liberty Markets is a user-friendly web-based DeFi interface that allows participants to supply digital assets to earn interest or borrow against them in a permissionless, on-chain environment. Built directly on Dolomite — a capital-efficient money market protocol known for its transparent liquidity provisioning, fast execution, and support for isolated positions — the platform avoids the need for WLFI to develop a proprietary lending system from scratch.
At launch, supported assets include:
- USD1 (WLFI's fully backed, dollar-pegged stablecoin) — positioned as the primary asset for lending, borrowing, and earning incentives.
- WLFI (the project's governance token).
- ETH (Ethereum).
- cbBTC (Coinbase's wrapped Bitcoin).
- USDC and USDT (leading stablecoins).
Users can supply these assets to liquidity pools to earn yield (with special incentives like 27% APY boosts and reward points for larger USD1 deposits) or use them as collateral to access loans. The system emphasizes flexibility, real-time settlements, and community governance — WLFI token holders can vote on future collateral additions, incentive structures, and protocol upgrades.
This integration positions USD1 at the heart of on-chain credit markets, allowing holders to keep their stablecoin "productive" rather than idle. As of mid-January 2026, USD1 has rapidly grown to over $3.4–3.5 billion in circulating supply, making it one of the fastest-growing stablecoins in history and a key competitor to established players like USDC and USDT.
The Dolomite Partnership: Why It Matters and the $DOLO Surge
Choosing Dolomite over dominant lending protocols like Aave or Morpho has sparked debate in the crypto community. Dolomite offers advanced features such as multi-chain support, isolated risk management, and efficient margin trading capabilities. Notably, Dolomite co-founder Corey Caplan has served as an advisor to WLFI since at least mid-2025, raising questions about potential preferential arrangements or insider benefits.
The market response was immediate and explosive: $DOLO, Dolomite's governance and utility token, rallied sharply — reports cite gains of 57%, 63%, and up to 68% in the 24 hours following the launch announcement. Trading volume spiked dramatically as traders anticipated increased protocol usage from WLFI's high-profile user base and political visibility. This surge highlights how real-world adoption catalysts can drive value in smaller DeFi tokens, turning Dolomite from a niche player into a spotlighted infrastructure provider overnight.
Broader Context: WLFI's Push Toward Regulated Crypto Finance
The lending platform rollout comes just days after WLFI's subsidiary, WLTC Holdings LLC, filed a "de novo" application with the Office of the Comptroller of the Currency (OCC) on January 7, 2026, to establish World Liberty Trust Company — a proposed national trust bank focused on stablecoin issuance, custody, and conversion.
If approved, this charter would bring USD1 fully under federal oversight, enabling seamless integration with traditional banking rails (like Fedwire and ACH), segregated asset management, and enhanced institutional trust. Proponents argue it provides regulatory clarity for banks, asset managers, and corporations using USD1 for cross-border payments, settlements, and treasury operations. Critics, including figures like Senator Elizabeth Warren, have raised alarms over potential conflicts of interest, given the Trump family's deep involvement and reported earnings from WLFI ventures exceeding hundreds of millions in 2025.
WLFI's roadmap extends far beyond lending: plans include a mobile app with integrated features, tokenized real-world assets (RWAs) like real estate and commodities, crypto debit cards, and deeper ecosystem integrations. The project positions itself as a full-stack financial platform combining DeFi innovation with compliance-heavy requirements.
Market Impact and Future Outlook
The launch coincides with a broader rebound in DeFi lending. Industry data shows active on-chain loans nearing $41 billion by late 2025, with total crypto credit hitting all-time highs around $67–74 billion. WLFI's entry could accelerate institutional adoption of USD1 while injecting fresh liquidity into DeFi markets.
However, the project's political ties introduce unique risks — from heightened regulatory scrutiny to debates over centralized influence in a supposedly decentralized space. Early adoption metrics will be crucial: if World Liberty Markets attracts meaningful TVL (total value locked) and user activity, it could solidify WLFI as a major force in regulated crypto finance.
For investors and users, this development signals growing maturity in stablecoin ecosystems, where utility extends beyond trading into productive yield generation and credit access. Whether $DOLO sustains its momentum or USD1 continues its explosive growth remains to be seen — but January 2026 has already proven transformative for Trump-linked crypto ventures.
