World Liberty Financial, a crypto venture associated with former U.S. President Donald Trump, has quietly distributed its USD1 stablecoin to holders of its native token, WLFI. According to blockchain tracking platforms Lookonchain and SlowMist, wallets linked to the project initiated bulk transfers late Tuesday night, sending 47 USD1 tokens each to WLFI-holding wallets.
Looks like Trump's World Liberty (@worldlibertyfi) is airdropping 47 $USD1 to every wallet that participated in the $WLFI sale.https://t.co/kbyhK9usHQ pic.twitter.com/YT8Y7IpfpU
— Lookonchain (@lookonchain) June 4, 2025
The airdrop was not publicly announced, but the company had previously proposed such a move as a way to test Ethereum mainnet’s airdrop functionality and promote the newly launched stablecoin. The tokens were sent to participants who had taken part in the WLFI token sale — a group of over 85,000 verified users, according to the project’s March disclosures.
Though not confirmed through official channels, the airdrop follows a snapshot vote held last month, where the proposal received an overwhelming 99.96% approval. In line with the plan, the USD1 stablecoin, launched in March, is claimed to be fully backed by short-term U.S. Treasuries, dollar deposits, and other cash equivalents — aligning with the broader push for regulated, asset-backed stablecoins in the U.S.
The timing is notable. U.S. lawmakers are currently weighing the GENIUS Act, which seeks to enforce greater transparency and safety standards for stablecoin issuers. Amid this shifting landscape, dollar-backed stablecoins have surged in popularity, recently crossing $250 billion in global market cap, fueled in part by Trump’s vocal support for the sector.
Still, the World Liberty project has drawn political and financial scrutiny. While the Trump family holds visible ambassadorial roles, critics — including Senator Richard Blumenthal — have questioned the potential conflicts of interest and alleged financial benefit. World Liberty’s legal team has dismissed these claims as “fundamentally flawed.”
There are also questions about centralization. According to Dune Analytics, just three wallets control nearly 94% of the total USD1 supply, raising concerns about accessibility and long-term trust. The identities behind these wallets remain unclear, though speculation includes institutional backers such as Justin Sun or custodial partners like BitGo.
