World Liberty Financial (WLFI), the crypto venture majority-controlled by the family of President Donald Trump, has announced the expansion of its USD1 stablecoin onto the Canton Network, a move that is being widely touted as an aggressive expansion because of how it shifts USD1 from general retail blockchains into a network deliberately designed for regulated institutional finance.
This comes after the Abu Dhabi investment firm MGX made a significant $2 billion investment into Binance, fully completed using the USD1 stablecoin, and Binance introduced USD1 trading pairs for popular tokens, including BNB, ETH, and SOL
USD1 enters Cantor Network
The USD1 stablecoin is regarded as one of the fastest-growing digital dollar stablecoins, with its $2.7 billion market capitalization. The fully reserved, 1:1 redeemable digital asset is backed entirely by short-term U.S. government treasuries, U.S. dollar deposits, and other cash equivalents.
As earlier stated, the decision to launch USD1 on the Canton Network highlights WLFI’s aim to expand the stablecoin’s capabilities into a regulated, interoperable ecosystem designed for global finance.
Unlike regular blockchains, Canton boasts an architecture that allows institutions to settle tokenized assets and stablecoins with privacy, control, and compliance, enabling a wide range of high-value financial use cases.
Some of those use cases include collateralization for derivatives and institutional lending, instant, cross-border payments with 24/7 settlement, on-chain asset issuance, funding, and redemption, as well as interoperable on-chain financing across institutions and markets.
“Institutions around the world, from sovereign entities to global asset managers, are looking for a trusted and purely digital U.S. dollar,” said Zak Folkman, Co-Founder and Chief Operating Officer of World Liberty Financial.
According to Folkman, the intention to deploy USD1 on Canton will not only allow regulated institutions to transact securely and privately but also do so while leveraging the programmability and efficiency of blockchain technology.
“Canton’s institutional-grade infrastructure creates an ideal foundation for real-world digital dollar settlement,” Folkman added.
“WLFI’s move to bring USD1 to Canton highlights the growing demand for compliant, interoperable digital assets within institutional markets,” said Melvis Langyintuo, Executive Director of the Canton Foundation. “Canton’s privacy-first architecture enables stablecoins like USD1 to power next-generation financial applications, from intraday repo to digital bond settlement, without compromising regulatory requirements.”
Binance added new USD1 trading pairs
The recent development regarding WLFI comes days after Binance, the world’s largest cryptocurrency exchange, announced that users can now trade tokens like BNB, ETH, and SOL using USD1 trading pairs.
Last week, the exchange revealed plans to bring USD1 “into several of the platform’s most active spot markets.” It also said that within the week, it would be converting all collateral assets backing Binance-Peg BUSD (B-Token) into USD1 at a 1:1 ratio.
“The transition means USD1 will become an integral part of Binance’s updated collateral structure, further embedding the stablecoin within the exchange’s ecosystem,” World Liberty said in a statement.
Currently, there are about $2.8 billion worth of USD1 in circulation, according to DeFiLlama data. Much of the supply originates from the Abu Dhabi investment firm MGX’s decision to use USD1, earlier this year, to make a $2 billion investment into Binance.
“Binance’s expansion of USD1 marks an important moment in WLFI’s effort to make digital US dollar stablecoins available to people everywhere,” World Liberty CEO and co-founder Zach Witkoff said in a statement. “By integrating USD1 into liquidity, trading, and collateral systems on the world’s largest exchange, Binance is giving hundreds of millions of users improved access to USD1.”
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Source: https://www.cryptopolitan.com/usd1-aggressive-expansion-cantor-network/
