How Global Liberty’s $3.4B USD1 Stablecoin Will Contribute to On-Chain Credit Markets

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Global Liberty Finance has entered DeFi lending with the launch of Global Liberty Markets, an onchain lending and borrowing platform built around a dollar-pegged stablecoin USD1.

The platform uses smart contracts to manage loan terms, replacing centralized intermediaries with transparent and automated risk controls on the blockchain.

USD1 plays a central role as a primary lending and settlement asset, allowing users to unlock liquidity from volatile holdings such as ETH or tokenized Bitcoin without having to sell those assets.

Backed securities include major cryptocurrencies and stablecoins, with plans to add real-world assets, extending onchain credit beyond crypto-native markets.

World Freedom Finance is a new entrant into the decentralized finance (DeFi) space. The project, linked to the family of US President Donald Trump, has entered the crypto lending market by launching Global Freedom Markets.

Global Liberty Markets is an onchain lending and lending platform built around the project's USD1, a stablecoin backed by the US dollar. With USD1's circulating supply now around $3.4 billion, the project positions stablecoins not only as payment instruments, but also as an integral part of blockchain-based credit markets.

This article examines global free markets and USD1 and the expansion of DeFi lending and access to credit. It examines how onchain lending works, why stable credit plays a central role in decentralized credit, the long-term strategy of Global Freedom, and how users can safely navigate smart contract-based platforms.

What is World Freedom Finance?

Global Freedom Finance is a DeFi initiative focused on building blockchain-based financial services, including payments, lending and treasury management. The project attracted further attention due to its reported ties to members of the Trump family. It emphasizes the development of compliant and transparent crypto financial products.

While its political associations have attracted publicity, the project's broader vision is in line with the broader DeFi industry trend to create financial systems that integrate stablecoins, collateralized loans, and secured assets into one chain framework.

Did you know this? Some DeFi lending protocols can process liquidity in seconds, which can stop trading faster than many stock exchanges. During periods of intense crypto market activity, automated bots – rather than humans – typically compete to execute these transactions.

The first period of the world's free markets and USD1

World Liberty Finance has entered the digital asset lending sector, reflecting a growing focus on decentralized credit as regulatory frameworks become clearer. The new platform, World Liberty Markets, was launched on January 12, 2026 to facilitate cryptocurrency lending and borrowing. The system will be powered by the World Freedom Dollar-Page stablecoin, USD1, along with the WMFI governance token.

Before the credit initiative started, USD1 was already used:

The rapid increase in the supply of USD1 indicates that it is being taken not only as a trading pair but also as a settlement asset for broader financial activities. This liquidity is now expanding to onchain credit markets through the world's free markets.

Global Free Markets Expand DeFi Loans and Credit Offerings

Global Free Markets is an onchain protocol for lending and borrowing. It allows users to:

Put assets to get a product like lenders

Provide collateral and borrow against it

Manage all positions with modern contracts instead of centralized intermediaries.

The platform supports both sides of the credit market in one decentralized system. USD1, which serves as the central liquid value, is similar to established DeFi lending protocols.

Rather than relying on off-chain ledgers or handwritten notes, credit terms, collateral ratios and liquidity limits are automatically enforced by smart contracts. Risk metrics are directly visible on the blockchain.

Did you know this? In DeFi, interest rates can change blockchain, meaning borrowing costs can be updated every few seconds on fast blockchains. This differs from traditional loans, where rates are usually fixed for months or years.

How the onchain credit system works

In essence, Global Liberty Markets operates as a collateralized credit market. Users place assets in pools available to borrowers. Collateral must exceed the value of the loan to protect lenders from default.

Supported Warranty Coverages;

Ether (ETH)

Tokenized Bitcoin (BTC) representatives

Stablecoins such as USDC (USDC) and Tether's USDt (USDT).

USD1

Interest rates vary based on supply and demand in each asset class. When collateral values ​​fall below the required threshold, positions may experience automatic liquidation to maintain solvency.

World Liberty also indicated plans to support real-world assets (RWAs), which would allow tokens linked to real estate or treasury goods to be used as collateral. If implemented, this would extend onchain lending beyond crypto-native assets.

Why stable coin lending is important for onchain.

Stablecoins play a key role in crypto credit markets because they offer:

In a world free arrangement, USD1 is used as the main currency for borrowing and lending. Users can offer volatile assets such as ETH or tokenized BTC and borrow USD1, gaining liquidity without selling those holdings.

This model is similar to a traditional secured loan, where borrowers pledge assets in exchange for cash, but it works entirely on blockchain-based systems.

Stablecoin-based lending also supports enhanced financing activities, including leveraged trading, hedging strategies, and treasury funding of crypto-based businesses.

World Freedom OCC application and long-term strategy

The launch of World Liberty Credit follows its application for a national trust bank charter with the US Office of the Comptroller of the Currency (OCC). While approval is uncertain, the application focuses on long-term strategy for regulatory compliance.

If granted, such a charter would allow World Liberty to:

Providing security services

Combine stable coin withdrawals with controlled financial activities

Create partnerships with traditional payment systems.

This approach reflects a broader shift in the crypto industry, where companies are adopting regulated structures rather than operating entirely outside of traditional finance.

Broader regulatory transparency in Statcoins and digital asset protection in the US and other regions has reduced uncertainty for institutional participants, spurring renewed interest in blockchain-based credit systems.

Did you know this? Stablecoin issuers hold more short-term U.S. Treasury bills than the central banks of many mid-sized countries combined, making the stablecoin an unexpected but growing participant in global government debt markets.

The evolution of crypto lending

In the last cycle, crypto credit markets have crashed mainly because of centralized entities:

Cases like BlockFi and Celsius have highlighted the dangers inherent in centralized credit models rather than the flaws in blockchain technology.

In comparison, DeFi lending protocols work with:

Meanwhile, venture investment and developer activity in decentralized lending continues to grow. Projects focused on Bitcoin-backed lending, RWA tokenization, and institutional DeFi systems are gaining new attention, suggesting that onchain credit is growing into a more established market segment.

Explore modern contracts and market dynamics

Despite rising interest rates, online lending still carries risks, including:

Disadvantages of smart contracts

A market shock that can trigger rapid liquidation

Regulatory uncertainty around stablecoin stocks

Liquidity concentrated in a particular set of assets.

Additionally, while leveraged lending reduces default risk, it limits access to users who do not have significant crypto holdings. As a result, onchain lending is currently primarily used as a tool for capital efficiency among existing asset owners rather than as a means of broader financial inclusion.

Expanding support for tokenized RWAs may expand the scope of onchain credit, but it also introduces challenges related to asset verification, legal enforcement, and cross-border regulation.