Trump-Linked World Liberty Financial Announces USD1 Airdrop for Early WLFI Holders

Highlights:

• WLFI proposes a small-scale USD1 stablecoin airdrop to test the system and reward holders.
• The airdrop will occur on Ethereum, with timing and details pending community feedback.
• USD1 stablecoin launches for institutional investors with Ethereum and BNB Chain support.

World Liberty Financial (WLFI), a DeFi project tied to President Donald Trump and his sons, has announced a limited airdrop of its USD1 stablecoin to all existing WLFI token holders. This initiative aims to test the functionality of its airdrop system in a live environment and reward early supporters.

🦅 We just posted a new governance proposal:

To test our airdrop functionality by distributing USD1 to all $WLFI holders — rewarding our earliest supporters and preparing for future growth.

Join the discussion 👇https://t.co/NDg5yMYUrM

— WLFI (@worldlibertyfi) April 7, 2025

According to the proposal released on Monday, all wallets holding WLFI tokens will be eligible for a fixed amount of USD1. The final distribution amount will depend on certain criteria set by the firm, along with the number of eligible wallets and the available budget. World Liberty Financial stated that even if the airdrop is approved, it can stop, change, or end the test at any time. The firm also has the right to set more eligibility requirements.

The airdrop is planned to occur on the Ethereum network, though the exact timing has not been set yet. Additional conditions and execution details will be provided after community feedback and a formal vote. “Testing the airdrop mechanism in a live setting is a necessary step to ensure smart contract functionality and readiness,” the proposal said.

World Liberty Financial Launches USD1 Stablecoin and Raises $550M

World Liberty Financial was launched in September last year and has quickly gained attention in the crypto industry. The platform is known for its consistent crypto purchases, which influence digital asset prices, benefiting traders. It has raised $550M through token sales and introduced the USD1 stablecoin in March.

Trump family project World Liberty Financial (WLFI) has completed its token sale, with a total financing amount of US$550 million. Before the issuance of TRUMP tokens, WLFI sales were stagnant. Justin Sun was one of the largest buyers. https://t.co/HCWab73UtZ

— Wu Blockchain (@WuBlockchain) March 14, 2025

Last month, WLFI revealed plans to introduce USD1, a stablecoin targeted at institutional and sovereign investors. The coin is pegged to the U.S. dollar and supported by short-term U.S. treasuries, dollar deposits, and cash equivalents. It will first be accessible on Ethereum and BNB Chain. The team has already conducted tests of USD1 transfers between Ethereum and BNB Chain with Wintermute’s participation.

Co-founder Zach Witkoff stated that USD1 combines traditional finance credibility with decentralized systems, offering secure cross-border payments for institutions. This launch comes as stablecoins see significant growth, with the market expanding by over 46% in the past year.

Trump’s Stablecoin Venture Sparks Legal Concerns

After the launch of USD1, U.S. lawmakers have expressed concerns about Trump’s financial involvement in the project. They worry that Trump’s financial involvement could affect the fairness of the STABLE Act, which Congress is discussing. The platform’s governance token cannot be transferred. It raises concerns regarding decentralization and transparency.

Tensions erupted during a recent House Financial Services Committee meeting. Democrats advocated for changes to prevent sitting presidents, cabinet members, and their families from launching stablecoins during their time in office.

Last week, Sen. Elizabeth Warren (D-MA) and Rep. Maxine Waters (D-CA) called on the SEC to release internal records about WLFI. They expressed concerns about possible “regulatory favoritism” and the agency’s halt on enforcement actions, including one related to WLFI investor Justin Sun.

The senators wrote:

“President Trump’s involvement in this venture, as he strips financial regulators of their independence and Congress simultaneously considers stablecoin legislation, presents an extraordinary conflict of interest that could create unprecedented risks to our financial system and to the integrity of decisions made by the [Fed and OCC].”