Trump-Linked Stablecoin USD1 Expands on BNB Chain as Market Rallies on Regulatory News

World Liberty Financial (WLF), a decentralized finance (DeFi) protocol with notable links to Donald Trump and his family, has announced a significant expansion for its USD1 stablecoin. In a strategic partnership with Re7 Labs, the DeFi arm of London-based hedge fund Re7 Capital, WLF is launching a dedicated USD1 vault on the lending platforms Euler and Lista. This move, detailed in a joint statement, is a core component of WLF's strategy to increase the adoption and liquidity of its dollar-pegged stablecoin across the BNB Chain. The choice of BNB Chain is deliberate, leveraging its reputation for high transaction speeds and low fees, which are critical for scalable DeFi applications. This collaboration aims to position USD1 as a key asset within the burgeoning DeFi ecosystem, targeting both crypto-native traders and institutional players seeking stable, on-chain dollar exposure.

Institutional Interest and Political Undercurrents

The partnership gains further weight from the recent activities of Re7 Labs, which just last week secured a commitment of up to $10 million from VMS Group, a Hong Kong-based family office managing approximately $4 billion in assets. According to Evgeny Gokhberg, founder of Re7 Capital, this collaboration signifies a shared vision for building next-generation DeFi infrastructure that prioritizes stability, transparency, and capital efficiency. However, the move is shadowed by significant political developments. The news coincides with the U.S. Senate passing a stablecoin regulation bill with bipartisan support. In a move that has drawn scrutiny, legal disclosures on the WLF website, as reported by author @EmberCN, indicate that DT Marks DEFI LLC, an entity affiliated with Donald J. Trump, has reduced its stake in the platform's holding company from 60% to about 40%. This apparent offloading of a 20% stake ahead of major regulatory advancements has fueled debate about potential conflicts of interest, with some lawmakers raising concerns about the president's role in regulating an industry where his family has direct financial ties.

Market Reacts Bullishly to Stablecoin Developments

Despite the political controversy, the digital asset market has interpreted the legislative progress for stablecoins as a powerfully bullish signal. The broader crypto market saw a significant rally, suggesting traders are pricing in the benefits of regulatory clarity. Ethereum (ETH) has been a standout performer, with the ETHUSDT pair surging by 5.95% to trade at $2,593.57, having reached a 24-hour high of $2,615.26. This outperformance is clearly visible in the ETHBTC trading pair, which climbed an impressive 3.55% to 0.02358. This indicates a strong capital rotation into Ethereum and its ecosystem, likely driven by the news's direct relevance to DeFi, where Ethereum remains the dominant platform. Similarly, BNB, the native token of the chain where USD1 is expanding, posted a solid 1.08% gain, with the BNBUSDT price hitting $660.12 and testing resistance near its daily high of $664.29. This positive price action in BNB reflects investor confidence in the chain's growth prospects following the integration of another stablecoin project with high-profile connections.

The bullish sentiment is not confined to ETH and BNB. Bitcoin (BTC) also demonstrated considerable strength, with the BTCUSDT pair rising 2.28% to an eye-catching price of $109,340.73, based on current data feeds. While this price point is anomalous compared to broader market indices, the percentage gain reflects a clear upward trend, pushing towards its 24-hour high of $109,650. Other major altcoins joined the rally, showcasing a risk-on appetite across the market. Solana (SOL) jumped 4.27% to $155.79, while Chainlink (LINK) saw a robust 5.82% increase to $13.81. The widespread gains suggest that the market views the potential for a regulated U.S. stablecoin framework as a de-risking event, one that could unlock further institutional capital and pave the way for mainstream adoption. The involvement of entities like Re7 Capital and VMS Group in the WLF project underscores this trend of institutional finance converging with DeFi. For traders, this environment presents opportunities, but the murky details surrounding the Trump family's crypto dealings, which remain without full disclosure, add a layer of unique political risk to assets connected to the venture.