Left hand subsidy, right hand sponsorship, WLFI's "cash ability" business strategy.

CN
2 hours ago
Marketing Strategy: Pouring Money.

Written by: Eric, Foresight News

On June 14, local time in the United States, the UFC event held at the White House concluded for the first time. In addition to the unprecedented venue, the form of rewards was also different from before.

Organized by Trump, WLFI provided $250,000 USD1 for the Performance of the Night bonus (about $425,000 for each winner). Crypto.com additionally provided $1 million worth of CRO tokens for the Fight of the Night, bringing the total prize pool to approximately $1.65 million.

Reuters previously reported that in the first half of 2025, total revenue from Trump-related organizations soared from $51 million the previous year to $864 million, an increase of nearly 17 times. Of this $864 million, $802 million came from cryptocurrency businesses, with WLFI token sales contributing $463 million. This set of data clearly shows, for the first time, the complete path of how the Trump family transforms political influence into business profits.

In this vast landscape of crypto business, the rapid rise of the stablecoin USD1 is the most notable aspect. From a circulation of only $3.5 million when it launched in March 2025, it has escalated to over $5 billion today, becoming the fifth largest stablecoin globally, with only a slight gap towards the previous one, USDe. Although Trump's actions in using public resources for personal gain are highly controversial, the rapid rise of USD1, driven by both WLFI token subsidies and sponsorships, serves as a referenceable business case.

Using WLFI to Pay the Bills, Paving the Way for USD1

World Liberty Financial understood from the very beginning that the core competitiveness of stablecoins lies in circulation scenarios, which require substantial upfront investment. In the current stablecoin market, apart from USDT's dominance, even the second-place USDC needs to pay a hefty fee to Coinbase to ensure its usage rate.

Thus, WLFI chose a direct and efficient path: using its governance token WLFI as an incentive tool to pay subsidies to market participants in exchange for holding and using USD1.

In December 2025, Binance first launched a USD1 financial product, offering users holding it an annualized return of up to 20% for a month. Within hours of the program's launch, USD1's circulation increased by $45.6 million, and its total market value surpassed $3 billion. Following that, on January 23, 2026, Binance further introduced a WLFI airdrop activity totaling $40 million, distributing $10 million worth of WLFI tokens weekly to users holding USD1 on the platform, continuing for four weeks. Users only had to hold USD1 in their spot, fund, leverage, or futures accounts to automatically receive rewards, and using USD1 as leverage collateral also granted a 1.2x reward increase. This design effectively locked in user holding intentions, rapidly boosting the accumulation of USD1 on the Binance platform.

Subsequently, USD1 activities on Binance have been continuously expanded, and having tasted success, WLFI swiftly promoted the same model to other exchanges. Bybit launched a USD1 high-yield activity with nearly 20% APR in May 2026, using 45 million WLFI as rewards. WLFI even approved a long-term incentive plan through governance votes, intending to utilize no more than 5% of the unlocked treasury WLFI tokens to continuously subsidize centralized and decentralized platforms willing to integrate USD1.

The logic behind this strategy is quite clear: first, attract users and capital inflow with high yields, and then embed USD1 into various trading and payment scenarios through habitual use, ultimately forming a self-sustaining circulation network.

After Subsidies, It's About Expanding Scenarios

After disbursing hundreds of millions in subsidies, WLFI also needs to provide sufficient usage scenarios to allow USD1 to be used and circulated.

According to Arkham data, as of April 2026, Binance held about 89% of USD1's circulation, equivalent to about $4.7 billion concentrated on one platform, a highly centralized holding structure that is extremely rare among mainstream stablecoins. In May 2025, the Abu Dhabi sovereign fund MGX used $2 billion USD1 to complete its investment into Binance, directly boosting USD1's circulation from less than $200 million to $2.1 billion. Afterwards, Binance converted BUSD's collateral assets to USD1 and launched multiple trading pairs such as BNB/USD1, ETH/USD1, and SOL/USD1. In February 2026, Binance Wallet also added the feature to directly purchase Meme coins using USD1, further expanding USD1's practical use.

Binance solidified the use of USD1 in cryptocurrency trading, but the circulation of stablecoins does not end there.

The large issuance of USD1 needs to enter practical circulation to take effect, but USD1 does not have the luxury of gradually solidifying its position like USDT and USDC; it must first establish itself firmly in some special scenarios. Thus, combat events became WLFI's choice. Besides sponsoring UFC prizes, WLFI also integrated USD1 into the MMA ecosystem to incentivize payments and rewards for global fighters, fans, and gyms.

Prior to this, WLFI had made several attempts. In December 2025, Canton Network announced plans to deploy USD1 to support institutional-level instant cross-border payments, derivative collateral, tokenized asset settlements, and other scenarios; in January 2026, WLFI signed an MOU with Pakistan's virtual assets regulatory authority through its affiliated company SC Financial Technologies, exploring the integration of USD1 into the country's regulated digital payment system, focusing on cross-border remittances and payments.

Additionally, WLFI announced as early as September 2025 its plans to launch a USD1 debit card and accompanying retail app, supporting Apple Pay integration, allowing users to spend USD1 directly for daily purchases. WLFI originally planned to pilot in Q4 2025 and officially launch in Q1 2026, but as of now, there have been no further updates.

As of June 2026, USD1's circulation has stabilized at over $5 billion, with a 24-hour trading volume maintained at around $1.7 billion, covering multiple public chains including Ethereum, BNB Chain, Solana, and Tron. From $3.5 million to $5 billion, USD1 achieved this milestone in just over a year. Such growth rate is unprecedented in the history of any stablecoin development.

The scale of USD1 is not due to technological innovation or a natural explosion in market demand, but rather benefits from the political influence of the Trump family, continuous subsidies from the WLFI token, and deep ties with platforms like Binance. These three elements together form a complete "cash capability" business model: using WLFI in one hand to subsidize users and platforms, while using political resources and commercial sponsorship in the other hand to obtain support for infrastructure, ultimately reaping significant interest income from stablecoin reserves in between. This is not only a commercial experiment in the crypto industry but also an astonishing multiplier effect generated by the combination of political capital and financial engineering.

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